Impacts of Intermediate Trade on Structural Change

39 Pages Posted: 23 Aug 2012

See all articles by Denis Stijepic

Denis Stijepic

affiliation not provided to SSRN

Helmut Wagner

University of Hagen (Fernuniversitaet Hagen)

Date Written: August 23, 2012

Abstract

Traditional structural change theories study the dynamics of inter-sector labour-reallocation in autarky models. We analyse how model-results change if open economy setting is assumed, where we focus on the impacts of intermediate trade in a multi-sector growth model with capital accumulation. We show that, when controlling for specialisation-effects, open economy features a relatively high employment share of capital/manufacturing sector and a relatively low rate of labour-reallocation across consumption industries in comparison to autarky. The process of tertiarisation (transition to a services economy) is relatively slow in the intermediate trade model in comparison to the autarky model.

Keywords: structural change, factor reallocation, labour, multi-sector growth modelling, neoclassical growth theory, trade, intermediates, offshoring

JEL Classification: F16, F43, O14, O41

Suggested Citation

Stijepic, Denis and Wagner, Helmut, Impacts of Intermediate Trade on Structural Change (August 23, 2012). Available at SSRN: https://ssrn.com/abstract=2134961 or http://dx.doi.org/10.2139/ssrn.2134961

Denis Stijepic (Contact Author)

affiliation not provided to SSRN

Helmut Wagner

University of Hagen (Fernuniversitaet Hagen) ( email )

Universitätsstrasse 41
Feithstrathe 140
D-58084 Hagen
Germany
011-49-2331-987-2640 (Phone)
011-49-2331-987-391 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
100
Abstract Views
656
rank
319,373
PlumX Metrics