33 Pages Posted:
Date Written: October 2004
We study a model designed to understand the concept of unbalanced growth. We define leading sectors to be those that raise the profits from industrialization for other sectors the most. We identify the leading sectors and show that subsidizing them in sequence will raise welfare if the future is not discounted too strongly.
Keywords: Unbalanced Growth, Backward and Forward Linkages, Welfare
JEL Classification: 012, 030, D50
Suggested Citation: Suggested Citation