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.
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.
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 ba
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》
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