TY - JOUR
T1 - Capital accumulation and structural change in a small open economy
AU - Hu, Yunfang
AU - Mino, Kazuo
N1 - Publisher Copyright:
© 2014 Wiley Publishing Asia Pty Ltd.
PY - 2014/12/1
Y1 - 2014/12/1
N2 - This paper explores the relation between capital accumulation and transformation of industrial structure in a small open economy. Using a three-sector neoclassical growth model with non-homothetic preferences, we examine the dynamic behaviour of the small country in the alternative trade regimes. We show that capital accumulation plays a leading role in the process of structural transformation. It is also revealed that the trade pattern significantly affects structural change. We demonstrate that our model can mimic a typical pattern of change in industrial structure that has been observed in many developed economies.
AB - This paper explores the relation between capital accumulation and transformation of industrial structure in a small open economy. Using a three-sector neoclassical growth model with non-homothetic preferences, we examine the dynamic behaviour of the small country in the alternative trade regimes. We show that capital accumulation plays a leading role in the process of structural transformation. It is also revealed that the trade pattern significantly affects structural change. We demonstrate that our model can mimic a typical pattern of change in industrial structure that has been observed in many developed economies.
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U2 - 10.1111/1468-0106.12087
DO - 10.1111/1468-0106.12087
M3 - Article
AN - SCOPUS:84919655636
VL - 19
SP - 634
EP - 656
JO - Pacific Economic Review
JF - Pacific Economic Review
SN - 1361-374X
IS - 5
ER -