学术研究﹀
endowments, technology choices and structural change
2019-04-18
内容摘要：
no. e2019005
endowments, technology choices and structural change
bo zhang, zhengwen liu, justin yifu lin
july 21, 2020
abstract:
modern economic growth features continuous structural change in technology and industry. this paper is motivated by the empirical facts that technology in each industry, as well as the whole economy, becomes more capital intensive and the industrial structure is unimodal, with a leading industry at any time in the process of economic development. we set up an infinite-industry general equilibrium model to discuss technology choice and structural change in economic development. the model shows that along with the increase in capital endowment, every industry experiences technology upgrading from labor intensive to capital intensive, the industrial structure shifts more and more to capital intensive industries, and the leading industry is taken over by a new leading industry continuously. the predictions of the model are tested with a data set from the national bureau of economic research-u.s. census bureau's center for economic studies, and a counterfactual simulation is used to test the implications of the model. in a dynamic extension of the model, a modified keynes-ramsey rule is presented. the model provides a workhorse for multi-industry structural analysis.
keywords:
technology choices,general equilibrium, structural change, endowment.
the series of new structural economics working papers aims to encourage academic scholars and students from all over the world to conduct academic research in the field of new structural economics. excellent papers are selected irregularly and are offered academic suggestions and recommendation, but the published working papers are not intended to represent official communication from inse.
the present paper was approved by the a0 nse growth group.