Structural Change

Abstract

Structural change is a complex, intertwined phenomenon, not only because economic growth brings about complementary changes in various aspects of the economy, such as the sector compositions of output and employment and the organization of industry, but also because these changes in turn affect the growth process. Using a simple two-sector model, we highlight some driving forces behind structural change, attempt to convey the complexity of the phenomenon and identify some key issues discussed in the literature.

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