IntroductionV
The “New Structural Economics” presented in this book is an attempt
to set out this third wave of development thinking. Taking into account the
lessons learned from the growth successes and failures of the last decades,
it advances a neoclassical approach to study the determinants and dynamics
of economic structure. It postulates that the economic structure of an
economy is endogenous to its factor endowment structure and that sustained
economic development is driven by changes in factor endowments
and continuous technological innovation.
The factor endowments in a country are given at any specifi c time and
changeable over time. A country’s comparative advantages and thus its
optimal industrial structure are determined by its factor endowments.
Upgrading the industrial structure in a given country requires the upgrading
of the factor endowment structure from one that is relatively abundant
in labor and natural resources to one that is relatively abundant in capital,
the introduction of new technologies, and the corresponding improvement
in infrastructure to facilitate economic operations. The new structural
economics argues that the best way to upgrade a country’s endowment
structure is to develop its industries at any specifi c time according to the
comparative advantages determined by its given endowment structure
at that time. The economy will be most competitive, the economic surplus
will be the largest, and the capital accumulation and the upgrading
of factor endowment structure will be the fastest possible. For the private
enterprises in a country to enter industries according to the country’s
comparative advantages, relative factor prices must fully refl ect the relative
abundance of those factors, and those prices can be determined only
through competition in a well-functioning market. Therefore, the market
should be the basic institution of the economy.
For the introduction of new technologies, developing countries can turn
their backwardness into an advantage by borrowing or adapting technologies
that have already matured in richer economies. In contrast, advanced
economies must produce at the global technology frontier and have to
invest continuously in new R&D to achieve technological innovation.
Hence developing countries have the potential to achieve a rate of technological
innovation several times higher than that of advanced countries.
Economic development is a process of continuous technological innovation and structural transformation. Development thinking is inherently tied to the quest for sustainable growth strategies. This book provides a neoclassical approach for studying the determinants of economic structure and its transformation and draws new insights for development policy. The market is the basic mechanism for effective resource allocation at each level of development. However, economic development as a dynamic process entails structural changes, including industrial upgrading and diversification and corresponding improvements in hard and soft infrastructure. Such upgrading and improvements require coordination and go hand in hand with large externalities to firms transaction costs and returns to capital investment. Thus, in addition to an effective market mechanism, the government should play an active role in facilitating structural changes. The book provides empirical evidence in support of this framework as well as concrete advice to development practitioners.
to set out this third wave of development thinking. Taking into account the
lessons learned from the growth successes and failures of the last decades,
it advances a neoclassical approach to study the determinants and dynamics
of economic structure. It postulates that the economic structure of an
economy is endogenous to its factor endowment structure and that sustained
economic development is driven by changes in factor endowments
and continuous technological innovation.
The factor endowments in a country are given at any specifi c time and
changeable over time. A country’s comparative advantages and thus its
optimal industrial structure are determined by its factor endowments.
Upgrading the industrial structure in a given country requires the upgrading
of the factor endowment structure from one that is relatively abundant
in labor and natural resources to one that is relatively abundant in capital,
the introduction of new technologies, and the corresponding improvement
in infrastructure to facilitate economic operations. The new structural
economics argues that the best way to upgrade a country’s endowment
structure is to develop its industries at any specifi c time according to the
comparative advantages determined by its given endowment structure
at that time. The economy will be most competitive, the economic surplus
will be the largest, and the capital accumulation and the upgrading
of factor endowment structure will be the fastest possible. For the private
enterprises in a country to enter industries according to the country’s
comparative advantages, relative factor prices must fully refl ect the relative
abundance of those factors, and those prices can be determined only
through competition in a well-functioning market. Therefore, the market
should be the basic institution of the economy.
For the introduction of new technologies, developing countries can turn
their backwardness into an advantage by borrowing or adapting technologies
that have already matured in richer economies. In contrast, advanced
economies must produce at the global technology frontier and have to
invest continuously in new R&D to achieve technological innovation.
Hence developing countries have the potential to achieve a rate of technological
innovation several times higher than that of advanced countries.
本文摘自《新結構經濟學》
Economic development is a process of continuous technological innovation and structural transformation. Development thinking is inherently tied to the quest for sustainable growth strategies. This book provides a neoclassical approach for studying the determinants of economic structure and its transformation and draws new insights for development policy. The market is the basic mechanism for effective resource allocation at each level of development. However, economic development as a dynamic process entails structural changes, including industrial upgrading and diversification and corresponding improvements in hard and soft infrastructure. Such upgrading and improvements require coordination and go hand in hand with large externalities to firms transaction costs and returns to capital investment. Thus, in addition to an effective market mechanism, the government should play an active role in facilitating structural changes. The book provides empirical evidence in support of this fr