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Structural Change and Economic Growth in Developing Countries

In: The Balance between Industry and Agriculture in Economic Development

Author

Listed:
  • Vadiraj R. Panchamukhi

    (Research and Information System for the Non-Aligned and Other Developing Countries)

  • R. G. Nambiar

    (Research and Information System for the Non-Aligned and Other Developing Countries)

  • R. Mehta

    (Research and Information System for the Non-Aligned and Other Developing Countries)

Abstract

The connection between economic structure and the level of development has been one of the most extensively explored themes in both historical and cross-section studies. The most fruitful among these include Clark’s (1940) analysis of the changes in the use of labour with rising income, Kuznets’s study (1957) comparing elements of national accounts, and the more recent works of Chenery (1960) and Chenery and Syrquin (1975) exploring the patterns of development in the post-war period with more refined and improved methods. The central thesis emerging from these comparative studies is that for countries to grow, there must be ‘structural transformation’. This transformation involves shifts in resource allocation from primary to secondary activities, mainly manufacturing. This is borne out by the fact that growth occurs with certain regularities; and the direction of the change is the same, if one looks at one country at different points of time, and at different countries at the same point of time.

Suggested Citation

  • Vadiraj R. Panchamukhi & R. G. Nambiar & R. Mehta, 1989. "Structural Change and Economic Growth in Developing Countries," International Economic Association Series, in: Jeffrey G. Williamson & Vadiraj R. Panchamukhi (ed.), The Balance between Industry and Agriculture in Economic Development, chapter 3, pages 54-84, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-349-19746-0_3
    DOI: 10.1007/978-1-349-19746-0_3
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    Cited by:

    1. Badiane, Ousmane, 1990. "The Role of Agriculture and Trade In Economic Development," 1990 Symposium, Agricultural Restructuring in Southern Africa, July 24-27, 1990, Swakopmund, Namibia 183495, International Association of Agricultural Economists.
    2. Elisabetta Basile & Claudio Cecchi, 1997. "Beyond the sectors an analysis of economic differentiation in rural economy," Working Papers in Public Economics 29, University of Rome La Sapienza, Department of Economics and Law.

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