via Dani Rodrik’s weblog: Unconventional thoughts on economic development and globalization
Tyler Cowen refers to some of my work in his NYT piece on dimming prospects for high growth in emerging market economies. Coincidentally, the brand new Global Citizen Foundation has just published my more substantial paper on this topic, titled “The Past, Present, and Future of Economic Growth.”
There is a lot in this paper, but the bit that I think is really new is the distinction between two different growth drivers, which I call the “fundamentals” and “structural transformation” channels. Not great descriptors, but bear with me for a while to see what I am getting at.
By fundamentals, I am referring to the development of fundamental capabilities in the form of human capital and institutions. Long-term growth ultimately depends on the accumulation of these capabilities – everything from education and health to improved regulatory frameworks and better governance.
By structural transformation, I have in mind the birth and expansion of new (higher-productivity) industries and the transfer of labor from traditional or lower-productivity activities to modern ones. With the exception of natural-resource bonanzas, extraordinarily high growth rates are almost always the result of rapid structural transformation, industrialisation in particular.
Continue reading
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment