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
Externally publishedYes

ASJC Scopus subject areas

  • Economics and Econometrics


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