IntroductionVII

　　Chapter IV illustrates how to apply the GIFF in developing countries.

　　Using the example of Nigeria, the chapter identifi es appropriate comparator

　　countries and selects a wide range of industries in which Nigeria may

　　have latent comparative advantage as the comparator countries may be

　　losing theirs. The chapter argues that these industries, which include food

　　processing, light manufacturing, suitcases, shoes, car parts, and petrochemicals,

　　may lend themselves to targeted interventions of the government.

　　The paper also discusses binding constraints to growth in each of

　　these industries’ value chains as well as mechanisms through which governance-

　　related issues in the implementation of industrial policy could be

　　addressed.

　　Chapter V focuses on the question of fi nancial structure and development.

　　Financial structure varies signifi cantly across countries and,

　　within a country, at different levels of development. The chapter argues

　　that the optimal fi nancial structure in an economy is endogenous to

　　real demand for fi nancial services based on industrial structure, which

　　in turn hinges on a country’s comparative advantages. Historically, the

　　fi nancial literature has argued that fi nancial depth rather than fi nancial

　　structure matters for economic development. This chapter provides

　　an overview of theoretical and empirical advances that support

　　the notion that fi nancial structure is important for economic development

　　and endogenous to its industrial structure. It also discusses the

　　circumstances under which the actual fi nancial structure deviates from

　　its optimal structure.

　　The New Structural Economics argues that countries that pursue a

　　comparative-advantage-following development strategy perform better

　　than other countries. In chapter VI, the book presents empirical evidence to

　　support this notion. It shows that countries that follow their comparative

　　advantage have higher growth, lower economic volatility, and less inequality.

　　It argues that the failure of most developing countries to converge with

　　advanced economies can be explained largely by their governments’ inappropriate

　　development strategies. In the past, governments placed priority

　　on the development of certain capital-intensive industries rather than

　　focusing their efforts on upgrading a country’s endowment structure and

　　creating an enabling environment for the development of sectors aligned

　　with a country’s comparative advantage.

本文摘自《新結構經濟學》

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　　 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.