Capital accumulation and structural change in a small open economy

Yunfang Hu, Kazuo Mino

    Research output: Contribution to journalArticlepeer-review

    4 Citations (Scopus)


    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.

    Original languageEnglish
    Pages (from-to)634-656
    Number of pages23
    JournalPacific Economic Review
    Issue number5
    Publication statusPublished - 2014 Dec 1

    ASJC Scopus subject areas

    • Economics and Econometrics

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