Beyond Balanced Growth. Economic Development; Industrialization

A1.15 WP 1693

Posted: 16 Mar 1998

See all articles by Piyabha P. Kongsamut

Piyabha P. Kongsamut

University of Rochester - Department of Economics

Sergio T. Rebelo

Northwestern University - Kellogg School of Management; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Danyang Xie

Hong Kong University of Science & Technology (HKUST) - Department of Economics

Date Written: 1997

Abstract

One of the most striking regularities of the growth process is the massive reallocation of labor from agriculture into industry and services. Balanced growth models are commonly used in macroeconomics because they are consistent with the well-known Kaldor facts about economic growth. These models are, however, inconsistent with the structural change dynamics that are a central feature of economic development. This paper discusses models with generalized balanced growth paths. These paths retain some of the key features of balanced growth but are consistent with the observed labor reallocations dynamics.

JEL Classification: O14, O41

Suggested Citation

Kongsamut, Piyabha P. and Tavares Rebelo, Sergio and Xie, Danyang, Beyond Balanced Growth. Economic Development; Industrialization (1997). A1.15 WP 1693. Available at SSRN: https://ssrn.com/abstract=60144

Piyabha P. Kongsamut

University of Rochester - Department of Economics ( email )

Harkness Hall
Rochester, NY 14627-0158
United States
301-770-3789 (Phone)

Sergio Tavares Rebelo (Contact Author)

Northwestern University - Kellogg School of Management ( email )

2001 Sheridan Road
Leverone Hall
Evanston, IL 60208
United States
847-467-2329 (Phone)
847-491-5719 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Danyang Xie

Hong Kong University of Science & Technology (HKUST) - Department of Economics ( email )

Clear Water Bay
Kowloon, Hong Kong
China
852-2358-7603 (Phone)
852-2358-2084 (Fax)

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