The Drivers of Structural Change

Neuss, Leif Van

doi:10.1111/joes.12266

Cited by 82 publications

(41 citation statements)

References 256 publications

(393 reference statements)

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“…The distribution of the labour force and the economic structure by sectors indicate the economic development level of countries. Differences between the employment and value added shares reflect cross-sector differences in labour productivity (Van Neuss, 2019). The speed and scope of the sectoral shifts reflect the willingness and ability of labour and capital to address the high productivity sectors and all these factors affected by the policy and institutional environment (ESCAP, 2016).…”

Section: Economic Growth and Sectoral Composition Of Turkish Gdpmentioning

confidence: 99%

Structural Transformation of the Turkish Economy under the Scope of Sustainable Development

Karaalp-Orhana¹

2019

EJSD

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The distribution of the labour force by sectors and the country economic structure indicate the economic development level of countries. The traditional sectoral transformation is observed in all countries during the economic development process. Since the establishment of the Republic of Turkey, industrialization has been one of the fundamental development policies to be achieved. As an inevitable result of the development, the sectoral distribution of production and employment changed in Turkish economy over the years. This structural transformation is associated with the transition from primary sector to capital intensive production structure in which the manufacturing and the service sectors expand while the agricultural sector shrinks. However, the agricultural sector is still important in Turkey. Today, approximately one-fifth of the labour force is employed in the agricultural sector. This ratio shows the developing country feature of Turkish labour market despite the industrialization and urbanization policies and the structural changes in recent years. In this context, the aim of this study is to analyze the sectoral transformation of the Turkish economy within the scope of the sectors share in the GDP of Turkey and the share of sectors in the total employment, within the changing structure of the labour market and the level of urbanization.Keywords: economic development, structural transformation, Turkish economy

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Section: Economic Growth and Sectoral Composition Of Turkish Gdpmentioning

confidence: 99%

Structural Transformation of the Turkish Economy under the Scope of Sustainable Development

Karaalp-Orhana¹

2019

EJSD

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“…In contrast, studies like Baumol [1967]; Echevarria [1997]; Kongsamut et al [2001]; Laitner [2000]; Matsuyama [1992] construct a range of models that explain structural change without relying on balanced growth. There is also now a considerable literature on the empirical divers of structural change [Van Neuss, 2019].…”

Section: Theories Of Growth Development and Structural Changementioning

confidence: 99%

Economic Structures and Dynamics: A Morphogenetic View

Venkatachalam

Kumar

2022

Structural Change and Economic Dynamics

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Economic systems are characterised by constant change and evolution, and explanations concerning the properties of economic structures have received sustained interest. The structure of a system and its dynamics can influence each other through feedback effects. In this paper we offer a brief survey of how structure plays a role in dynamic economic theory -in particular, growth and business cycles. We propose a morphogenetic framework, inspired from the creation of forms in developmental biology, as a potential unifying approach for studying economic structures and their dynamics. We synthesise insights from three different strands of research, focusing on the role of coupling, diffusion and symmetry-breaking. We highlight their existing and prospective links with economics.

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“…Endogenous growth theories include human capital development, knowledge spillovers as well as research and development (Aghion & Howitt, 1992;Grossman & Helpman, 1991a, b;Romer, 1990). Lucas and Romer included spillover effects based on Arrow (1962) and Uzawa (1965), who observed that learning-by-doing and knowledge spillover positively affected labor productivity on the aggregate level of the economy and leading to structural change (Matsuyama, 2008;Ngai & Pissarides, 2007;Swiecki, 2017;van Neuss, 2019). Romer (1986) started with persistent growth explained by the impact of externalities on economic development (Krueger, 1997).…”

Section: Growth Theoriesmentioning

confidence: 99%

Revising Growth Theory in the Artificial Age: Putty and Clay Labor

Puaschunder

2020

ABR

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The introduction of Artificial Intelligence (AI) in our contemporary society imposes historically unique challenges for humankind. The emerging autonomy of AI holds unique potentials of eternal life of robots, AI and algorithms alongside unprecedented economic superiority, data storage and computational advantages. Yet to this day, it remains unclear what impact AI taking over the workforce will have on economic growth. This paper therefore first establishes what AI is and provides a theoretical background on standard neoclassical and heterodox economics growth theories with particular attention to the Cambridge Capital Controversy’s argument to divide capital components into fluid, hence more flexible (e.g., petty cash, checking account), and more clay, hence more inflexible (e.g., factories and intransferable means of production), components. The contemporary trend of slowbalisation is described, as the slowing down of conventional globalization of goods, services and Foreign Direct Investments (FDI) flows; yet at the same time, we still see human migration and air travel as well as data transfer continuing to rise. These market trends of conventional globalization slowing and rising AI-related industries are proposed as first market disruption in the wake of the large-scale entrance of AI into our contemporary economy. Growth in the artificial age is then proposed to be measured based on two AI entrance proxies of Global Connectivity Index and The State of the Mobile Internet Connectivity 2018 Index, which is found to be highly significantly positively correlated with the total inflow of migrants and FDI inflow – serving as evidence that the still globalizing rising industries in the age of slowbalisation are connected to AI. Both indices are positively correlated with GDP output in cross-sectional studies over the world. In order to clarify if the found effect is a sign of industrialization, time series of worldwide data reveal that internet connectivity around the world is associated with lower economic growth from around 2000 on until 2017. A regression plotting Internet Connectivity and GDP per capita as independent variables to explain the dependent variable GDP growth outlines that the effect for AI is a significant determinant of negative GDP growth prospects for the years from 2000 until 2017. A panel regression plotting GDP per capita and internet connectivity from the year 2000 to explain economic growth consolidates the finding that AI-internet connectivity is a significant determinant of negative growth over time for 161 countries of the world. Internet connectivity is associated with economic growth decline whereas GDP per capita has no significant relation with GDP growth. To cross-validate both findings hold for two different global connectivity measurements. The paper then discusses a theoretical argument of dividing labor components into fluid, hence more flexible (e.g., AI), and more clay, hence more inflexible (e.g., human labor), components. The paper ends on a call for revising growth theories and integrating AI components into growth theory. AI entrance into economic markets is modeled into the standard neoclassical growth theory by creating a novel index for representing growth in the artificial age comprised of GDP per capita and AI entrance measured by the proxy of Internet Access percent per country. Maps reveal the parts of the world that feature high GDP per capita and AI-connectivity. The discussion closes with a future outlook on the law and economics of AI entrance into our contemporary economies and society in order to aid a successful and humane introduction of AI into our world.

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The Drivers of Structural Change

Cited by 82 publications

References 256 publications

Structural Transformation of the Turkish Economy under the Scope of Sustainable Development

Structural Transformation of the Turkish Economy under the Scope of Sustainable Development

Economic Structures and Dynamics: A Morphogenetic View

Revising Growth Theory in the Artificial Age: Putty and Clay Labor

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