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Unbalanced growth

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  • Kala Krishna
  • César A. Pérez

Abstract

. We study a model designed to understand the concept of unbalanced growth. We define leading sectors to be those that raise the profits from industrialization for other sectors the most. We identify the leading sectors and show that subsidizing them in sequence will raise welfare if the future is not discounted too strongly. Croissance non balancée. On étudie un modèle construit pour comprendre la notion de croissance non balancée. On définit les secteurs moteurs comme ceux qui augmentent les plus les profits de l’industrialisation pour les autres secteurs. On identifie les secteurs moteurs et on montre que les subventionner en séquence augmente le niveau de bien‐être si on n’escompte pas le futur trop fortement.

Suggested Citation

  • Kala Krishna & César A. Pérez, 2005. "Unbalanced growth," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 38(3), pages 832-851, August.
    • Handle: RePEc:wly:canjec:v:38:y:2005:i:3:p:832-851
    DOI: 10.1111/j.0008-4085.2005.00304.x
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    References listed on IDEAS

    as
    1. Kala Krishna & César Pérez, 2005. "Unbalanced growth," Canadian Journal of Economics, Canadian Economics Association, vol. 38(3), pages 832-851, August.
    2. Kiminori Matsuyama, 1995. "Complementarities and Cumulative Processes in Models of Monopolistic Competition," Journal of Economic Literature, American Economic Association, vol. 33(2), pages 701-729, June.
    3. Murphy, Kevin M & Shleifer, Andrei & Vishny, Robert W, 1989. "Industrialization and the Big Push," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1003-1026, October.
    4. Tibor Scitovsky, 1954. "Two Concepts of External Economies," Journal of Political Economy, University of Chicago Press, vol. 62(2), pages 143-143.
    5. Shleifer, Andrei, 1986. "Implementation Cycles," Journal of Political Economy, University of Chicago Press, vol. 94(6), pages 1163-1190, December.
    6. Dornbusch, Rudiger & Fischer, Stanley & Samuelson, Paul A, 1977. "Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods," American Economic Review, American Economic Association, vol. 67(5), pages 823-839, December.
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    Cited by:

    1. Kala Krishna & César Pérez, 2005. "Unbalanced growth," Canadian Journal of Economics, Canadian Economics Association, vol. 38(3), pages 832-851, August.
    2. Mehmet Demiral, 2016. "Has EU Accession Caused Structural Change in New Entrants? Intersectoral Linkage Analyses on Bulgaria and Romania," International Journal of Economics and Financial Issues, Econjournals, vol. 6(2), pages 671-681.

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    More about this item

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General

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