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In their famous paper on the “Big Push”, Murphy, Shleifer, and Vishny (1989) show how the combination of increasing returns to scale at the firm level and pecuniary externalities can give rise to a poverty trap, thereby formalising an old idea due to Rosenstein-Rodan (1943). We develop in...
Persistent link: https://www.econbiz.de/10012954362
This research explores the effect of industrialization on the process of development. In contrast to conventional … steam engines across French departments during the early phases of industrialization, the research establishes that … intensive industrialization in the middle of the 19th century increased income per capita in the subsequent decades but …
Persistent link: https://www.econbiz.de/10012912786
As history, institutions, social and political forces specific to any economy have a profound effect on that economy's dynamics, it is important to understand how these have evolved with the development of capitalism. The classical economists analysed economies with labour surpluses, which kept...
Persistent link: https://www.econbiz.de/10013112477
China is well-placed to avoid the so-called “middle-income trap” and to continue to converge towards the more advanced economies, even though growth is likely to slow from near double-digit rates in the first decade of this millennium to around 7% at the 2020 horizon. However, in order to...
Persistent link: https://www.econbiz.de/10010231008
This research explores the long-run effect of industrialization on the process of development. In contrast to … the French industrial revolution, the research establishes that regions in which industrialization was more intensive …. Nevertheless, intensive industrialization has had an adverse effect on income per capita, employment and equality by the turn of …
Persistent link: https://www.econbiz.de/10013016331
One of the most striking regularities of the growth process is the massive reallocation of labor from agriculture into industry and services. Balanced growth models are commonly used in macroeconomics because they are consistent with the well-known Kaldor facts about economic growth. These...
Persistent link: https://www.econbiz.de/10014069276
industrialization for four decades. Some manufacturing industries performed well, while some internal and external business environment …
Persistent link: https://www.econbiz.de/10012834383
In this paper, we develop a multi-country open economy extension of the famous Big Push model for a closed economy by Murphy et al. (1989). We show under which conditions the global economy in our model is caught in a poverty trap, characterised by a low-income equilibrium from which an escape...
Persistent link: https://www.econbiz.de/10012842123
have been mixed. Indonesia's structural transformation pattern has shifted, from 'upgrading industrialization' before the … crisis to 'stalled industrialization' afterwards. Both periods saw weak Kuznetsian tension, but patterns of structural …
Persistent link: https://www.econbiz.de/10012181082
industrialization process, were responsible for defining their different long term economic trajectories. A dialogue with Amsden's work …
Persistent link: https://www.econbiz.de/10014550805