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Structural transformation and production linkages in Asia-Pacific least developed countries: An input-output analysis

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  • Norbu, Nyingtob Pema
  • Tateno, Yusuke
  • Bolesta, Andrzej

Abstract

The least developed countries (LDCs) of Asia and the Pacific have achieved significant development gains in recent decades, most visibly in the reduction of extreme poverty. Structural transformation, although still in its formative stages, has played an important role in these processes. Through the movement of labour out of agriculture, structural transformation has resulted in productivity and output growth directly raising incomes of workers. However, it is not clear whether Asia-Pacific LDCs have been able to harness the potential backward and forward linkages between sectors such that productivity growth in one sector indirectly stimulates demand for goods and services of other sectors, which in turn creates additional employment within and across sectors. For an economy to fully benefit from such indirect impacts, structural transformation should be accompanied by strong backward and forward linkages.

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  • Norbu, Nyingtob Pema & Tateno, Yusuke & Bolesta, Andrzej, 2021. "Structural transformation and production linkages in Asia-Pacific least developed countries: An input-output analysis," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 510-524.
    • Handle: RePEc:eee:streco:v:59:y:2021:i:c:p:510-524
    DOI: 10.1016/j.strueco.2021.09.009
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