Industrial Structure, Appropriate Technology and Economic Growth in Less Developed Countries

The authors develop an endogenous growth model that combines structural change with repeated product improvement. That is, the technologies in one sector of the model become not only increasingly capital-intensive, but also progressively productive...

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Main Authors:	Lin, Justin Yifu, Zhang, Pengfei
Format:	Policy Research Working Paper
Language:	English
Published:	2012
Subjects:	ADVANCED COUNTRIES AGGREGATE PRODUCTION FUNCTION AGGREGATIVE MODEL AGRICULTURE ALLOCATION APPROPRIATE TECHNOLOGIES APPROPRIATE TECHNOLOGY AUTOMOTIVE BALANCED ECONOMIC GROWTH BALANCED GROWTH BASIC CAD CAPITAL ACCUMULATION CAPITAL FORMATION CAPITAL STOCK CAPITAL-LABOR CAPITAL-LABOR RATIO CAPITALISM COMPARATIVE ADVANTAGE COMPETITIVE MARKET CONSTANT ELASTICITY CONSTANT RATE CONSUMPTION GOODS DEMAND FUNCTIONS DEMOCRACY DEVELOPED ECONOMIES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT STRATEGY DIFFERENTIAL EQUATIONS DIMINISHING RETURNS DISCOUNT RATE ECONOMIC COOPERATION ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC IMPLICATIONS ECONOMIC INSTITUTIONS ECONOMIC PERFORMANCE ECONOMIC REFORM ECONOMIC REVIEW ECONOMIC STUDIES ELASTICITY ELASTICITY OF SUBSTITUTION ENDOGENOUS GROWTH ENDOGENOUS GROWTH MODEL ENDOGENOUS INNOVATION EQUILIBRIUM EVOLUTION OF TECHNOLOGY EXPANDING VARIETY EXPECTED PRESENT VALUE FACTOR DEMAND FACTOR ENDOWMENTS FACTORS OF PRODUCTION FINANCIAL SECTOR GLOBAL ECONOMY GROWTH LITERATURE GROWTH MODEL GROWTH OF NATIONS GROWTH RATE GROWTH RATES GROWTH THEORY INCOMES INCREASING RETURNS INDEXES INNOVATIONS INTERMEDIATE GOODS INTERNATIONAL TRADE KNOW-HOW LABOR FORCE LABOR MARKET LDCS LESS DEVELOPED COUNTRIES LESS DEVELOPED COUNTRY LONG-RUN GROWTH LONG-RUN POLICY MACROECONOMICS MODEL OF GROWTH MODERN ECONOMIC GROWTH MONETARY ECONOMICS MONOPOLY NEOCLASSICAL ECONOMICS NEOCLASSICAL GROWTH NEOCLASSICAL GROWTH THEORY NOMINAL INTEREST RATE OLIGOPOLY OPTIMIZATION OPTIMUM GROWTH PATENTS PER CAPITA INCOME POLICY ANALYSIS POLICY IMPLICATIONS POLICY MEASURES POLICY RESEARCH POLITICAL ECONOMY POPULATION GROWTH PRODUCTION FUNCTION PRODUCTION FUNCTIONS PROFIT MAXIMIZATION PUBLIC POLICY RAPID GROWTH RELATIVE IMPORTANCE RENT SEEKING RISK AVERSION SAVINGS SECTOR MODEL SOCIAL DEVELOPMENT SOCIALISM STATIC EQUILIBRIUM STRUCTURAL CHANGE TECHNICAL CHANGE TECHNICAL PROGRESS TECHNOLOGICAL CHANGE TECHNOLOGICAL PROGRESS TFP TOTAL FACTOR PRODUCTIVITY UTILITY FUNCTION VARIABLE INPUTS
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090416150001 http://hdl.handle.net/10986/4098

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spelling	okr-10986-40982021-04-23T14:02:15Z Industrial Structure, Appropriate Technology and Economic Growth in Less Developed Countries Lin, Justin Yifu Zhang, Pengfei ADVANCED COUNTRIES AGGREGATE PRODUCTION FUNCTION AGGREGATIVE MODEL AGRICULTURE ALLOCATION APPROPRIATE TECHNOLOGIES APPROPRIATE TECHNOLOGY AUTOMOTIVE BALANCED ECONOMIC GROWTH BALANCED GROWTH BASIC CAD CAPITAL ACCUMULATION CAPITAL FORMATION CAPITAL STOCK CAPITAL-LABOR CAPITAL-LABOR RATIO CAPITALISM COMPARATIVE ADVANTAGE COMPETITIVE MARKET CONSTANT ELASTICITY CONSTANT RATE CONSUMPTION GOODS DEMAND FUNCTIONS DEMOCRACY DEVELOPED ECONOMIES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT STRATEGY DIFFERENTIAL EQUATIONS DIMINISHING RETURNS DISCOUNT RATE ECONOMIC COOPERATION ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC IMPLICATIONS ECONOMIC INSTITUTIONS ECONOMIC PERFORMANCE ECONOMIC REFORM ECONOMIC REVIEW ECONOMIC STUDIES ELASTICITY ELASTICITY OF SUBSTITUTION ENDOGENOUS GROWTH ENDOGENOUS GROWTH MODEL ENDOGENOUS INNOVATION EQUILIBRIUM EVOLUTION OF TECHNOLOGY EXPANDING VARIETY EXPECTED PRESENT VALUE FACTOR DEMAND FACTOR ENDOWMENTS FACTORS OF PRODUCTION FINANCIAL SECTOR GLOBAL ECONOMY GROWTH LITERATURE GROWTH MODEL GROWTH OF NATIONS GROWTH RATE GROWTH RATES GROWTH THEORY INCOMES INCREASING RETURNS INDEXES INNOVATIONS INTERMEDIATE GOODS INTERNATIONAL TRADE KNOW-HOW LABOR FORCE LABOR MARKET LDCS LESS DEVELOPED COUNTRIES LESS DEVELOPED COUNTRY LONG-RUN GROWTH LONG-RUN POLICY MACROECONOMICS MODEL OF GROWTH MODERN ECONOMIC GROWTH MONETARY ECONOMICS MONOPOLY NEOCLASSICAL ECONOMICS NEOCLASSICAL GROWTH NEOCLASSICAL GROWTH THEORY NOMINAL INTEREST RATE OLIGOPOLY OPTIMIZATION OPTIMUM GROWTH PATENTS PER CAPITA INCOME POLICY ANALYSIS POLICY IMPLICATIONS POLICY MEASURES POLICY RESEARCH POLITICAL ECONOMY POPULATION GROWTH PRODUCTION FUNCTION PRODUCTION FUNCTIONS PROFIT MAXIMIZATION PUBLIC POLICY RAPID GROWTH RELATIVE IMPORTANCE RENT SEEKING RISK AVERSION SAVINGS SECTOR MODEL SOCIAL DEVELOPMENT SOCIALISM STATIC EQUILIBRIUM STRUCTURAL CHANGE TECHNICAL CHANGE TECHNICAL PROGRESS TECHNOLOGICAL CHANGE TECHNOLOGICAL PROGRESS TFP TOTAL FACTOR PRODUCTIVITY UTILITY FUNCTION VARIABLE INPUTS The authors develop an endogenous growth model that combines structural change with repeated product improvement. That is, the technologies in one sector of the model become not only increasingly capital-intensive, but also progressively productive over time. Application of the basic model to less developed economies shows that the (optimal) industrial structure and the (most) appropriate technologies in less developed economies are endogenously determined by their factor endowments. A firm in a less developed country that enters a capital-intensive, advanced industry in a developed country would be nonviable owing to the relative scarcity of capital in the factor endowments of less developed countries. 2012-03-19T19:09:57Z 2012-03-19T19:09:57Z 2009-04-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090416150001 http://hdl.handle.net/10986/4098 English Policy Research working paper ; no. WPS 4905 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ADVANCED COUNTRIES AGGREGATE PRODUCTION FUNCTION AGGREGATIVE MODEL AGRICULTURE ALLOCATION APPROPRIATE TECHNOLOGIES APPROPRIATE TECHNOLOGY AUTOMOTIVE BALANCED ECONOMIC GROWTH BALANCED GROWTH BASIC CAD CAPITAL ACCUMULATION CAPITAL FORMATION CAPITAL STOCK CAPITAL-LABOR CAPITAL-LABOR RATIO CAPITALISM COMPARATIVE ADVANTAGE COMPETITIVE MARKET CONSTANT ELASTICITY CONSTANT RATE CONSUMPTION GOODS DEMAND FUNCTIONS DEMOCRACY DEVELOPED ECONOMIES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT STRATEGY DIFFERENTIAL EQUATIONS DIMINISHING RETURNS DISCOUNT RATE ECONOMIC COOPERATION ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC IMPLICATIONS ECONOMIC INSTITUTIONS ECONOMIC PERFORMANCE ECONOMIC REFORM ECONOMIC REVIEW ECONOMIC STUDIES ELASTICITY ELASTICITY OF SUBSTITUTION ENDOGENOUS GROWTH ENDOGENOUS GROWTH MODEL ENDOGENOUS INNOVATION EQUILIBRIUM EVOLUTION OF TECHNOLOGY EXPANDING VARIETY EXPECTED PRESENT VALUE FACTOR DEMAND FACTOR ENDOWMENTS FACTORS OF PRODUCTION FINANCIAL SECTOR GLOBAL ECONOMY GROWTH LITERATURE GROWTH MODEL GROWTH OF NATIONS GROWTH RATE GROWTH RATES GROWTH THEORY INCOMES INCREASING RETURNS INDEXES INNOVATIONS INTERMEDIATE GOODS INTERNATIONAL TRADE KNOW-HOW LABOR FORCE LABOR MARKET LDCS LESS DEVELOPED COUNTRIES LESS DEVELOPED COUNTRY LONG-RUN GROWTH LONG-RUN POLICY MACROECONOMICS MODEL OF GROWTH MODERN ECONOMIC GROWTH MONETARY ECONOMICS MONOPOLY NEOCLASSICAL ECONOMICS NEOCLASSICAL GROWTH NEOCLASSICAL GROWTH THEORY NOMINAL INTEREST RATE OLIGOPOLY OPTIMIZATION OPTIMUM GROWTH PATENTS PER CAPITA INCOME POLICY ANALYSIS POLICY IMPLICATIONS POLICY MEASURES POLICY RESEARCH POLITICAL ECONOMY POPULATION GROWTH PRODUCTION FUNCTION PRODUCTION FUNCTIONS PROFIT MAXIMIZATION PUBLIC POLICY RAPID GROWTH RELATIVE IMPORTANCE RENT SEEKING RISK AVERSION SAVINGS SECTOR MODEL SOCIAL DEVELOPMENT SOCIALISM STATIC EQUILIBRIUM STRUCTURAL CHANGE TECHNICAL CHANGE TECHNICAL PROGRESS TECHNOLOGICAL CHANGE TECHNOLOGICAL PROGRESS TFP TOTAL FACTOR PRODUCTIVITY UTILITY FUNCTION VARIABLE INPUTS
spellingShingle	ADVANCED COUNTRIES AGGREGATE PRODUCTION FUNCTION AGGREGATIVE MODEL AGRICULTURE ALLOCATION APPROPRIATE TECHNOLOGIES APPROPRIATE TECHNOLOGY AUTOMOTIVE BALANCED ECONOMIC GROWTH BALANCED GROWTH BASIC CAD CAPITAL ACCUMULATION CAPITAL FORMATION CAPITAL STOCK CAPITAL-LABOR CAPITAL-LABOR RATIO CAPITALISM COMPARATIVE ADVANTAGE COMPETITIVE MARKET CONSTANT ELASTICITY CONSTANT RATE CONSUMPTION GOODS DEMAND FUNCTIONS DEMOCRACY DEVELOPED ECONOMIES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT STRATEGY DIFFERENTIAL EQUATIONS DIMINISHING RETURNS DISCOUNT RATE ECONOMIC COOPERATION ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC IMPLICATIONS ECONOMIC INSTITUTIONS ECONOMIC PERFORMANCE ECONOMIC REFORM ECONOMIC REVIEW ECONOMIC STUDIES ELASTICITY ELASTICITY OF SUBSTITUTION ENDOGENOUS GROWTH ENDOGENOUS GROWTH MODEL ENDOGENOUS INNOVATION EQUILIBRIUM EVOLUTION OF TECHNOLOGY EXPANDING VARIETY EXPECTED PRESENT VALUE FACTOR DEMAND FACTOR ENDOWMENTS FACTORS OF PRODUCTION FINANCIAL SECTOR GLOBAL ECONOMY GROWTH LITERATURE GROWTH MODEL GROWTH OF NATIONS GROWTH RATE GROWTH RATES GROWTH THEORY INCOMES INCREASING RETURNS INDEXES INNOVATIONS INTERMEDIATE GOODS INTERNATIONAL TRADE KNOW-HOW LABOR FORCE LABOR MARKET LDCS LESS DEVELOPED COUNTRIES LESS DEVELOPED COUNTRY LONG-RUN GROWTH LONG-RUN POLICY MACROECONOMICS MODEL OF GROWTH MODERN ECONOMIC GROWTH MONETARY ECONOMICS MONOPOLY NEOCLASSICAL ECONOMICS NEOCLASSICAL GROWTH NEOCLASSICAL GROWTH THEORY NOMINAL INTEREST RATE OLIGOPOLY OPTIMIZATION OPTIMUM GROWTH PATENTS PER CAPITA INCOME POLICY ANALYSIS POLICY IMPLICATIONS POLICY MEASURES POLICY RESEARCH POLITICAL ECONOMY POPULATION GROWTH PRODUCTION FUNCTION PRODUCTION FUNCTIONS PROFIT MAXIMIZATION PUBLIC POLICY RAPID GROWTH RELATIVE IMPORTANCE RENT SEEKING RISK AVERSION SAVINGS SECTOR MODEL SOCIAL DEVELOPMENT SOCIALISM STATIC EQUILIBRIUM STRUCTURAL CHANGE TECHNICAL CHANGE TECHNICAL PROGRESS TECHNOLOGICAL CHANGE TECHNOLOGICAL PROGRESS TFP TOTAL FACTOR PRODUCTIVITY UTILITY FUNCTION VARIABLE INPUTS Lin, Justin Yifu Zhang, Pengfei Industrial Structure, Appropriate Technology and Economic Growth in Less Developed Countries
geographic_facet	The World Region The World Region
relation	Policy Research working paper ; no. WPS 4905
description	The authors develop an endogenous growth model that combines structural change with repeated product improvement. That is, the technologies in one sector of the model become not only increasingly capital-intensive, but also progressively productive over time. Application of the basic model to less developed economies shows that the (optimal) industrial structure and the (most) appropriate technologies in less developed economies are endogenously determined by their factor endowments. A firm in a less developed country that enters a capital-intensive, advanced industry in a developed country would be nonviable owing to the relative scarcity of capital in the factor endowments of less developed countries.
format	Publications & Research :: Policy Research Working Paper
author	Lin, Justin Yifu Zhang, Pengfei
author_facet	Lin, Justin Yifu Zhang, Pengfei
author_sort	Lin, Justin Yifu
title	Industrial Structure, Appropriate Technology and Economic Growth in Less Developed Countries
title_short	Industrial Structure, Appropriate Technology and Economic Growth in Less Developed Countries
title_full	Industrial Structure, Appropriate Technology and Economic Growth in Less Developed Countries
title_fullStr	Industrial Structure, Appropriate Technology and Economic Growth in Less Developed Countries
title_full_unstemmed	Industrial Structure, Appropriate Technology and Economic Growth in Less Developed Countries
title_sort	industrial structure, appropriate technology and economic growth in less developed countries
publishDate	2012
url	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090416150001 http://hdl.handle.net/10986/4098
_version_	1764389909439709184

Industrial Structure, Appropriate Technology and Economic Growth in Less Developed Countries

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