{"title":"How Taiwan Managed to Grow","authors":"W. Chu","doi":"10.1093/OXFORDHB/9780198793847.013.25","DOIUrl":"https://doi.org/10.1093/OXFORDHB/9780198793847.013.25","url":null,"abstract":"This chapter examines how Taiwan transformed its economy in the post-war era, focusing on four different periods: import-substitution industrialization in the 1950s, export promotion and secondary import substitution in the 1960s and 1970s, entry into the high tech sector from the 1980s, and liberalization and globalization in the 1990s. Taiwan’s economic transformation was successful mainly due to suitable industrial policies which were adaptive to the changing situation. The country has emerged from being a low income to being a high income economy in the post-war period because it was able to sustain its quick pace of development throughout these decades. Its GDP and per capita GNP grew at an average rate of 9.2 and 5.8 per cent each year, respectively, in the first three decades of the postwar period, 1951–1980, and 6.3 and 4.9 per cent during 1981–2014. Despite encountering various challenges along the way, Taiwan experienced several rounds of structural transformation.","PeriodicalId":153188,"journal":{"name":"The Oxford Handbook of Structural Transformation","volume":"64 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-02-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114963801","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Structural Transformation in Egypt, 1965–2015","authors":"K. Ikram","doi":"10.1093/OXFORDHB/9780198793847.013.21","DOIUrl":"https://doi.org/10.1093/OXFORDHB/9780198793847.013.21","url":null,"abstract":"Between 1965 and 2015, the structure of the Egyptian economy changed slowly. The share of agriculture in GDP halved, while industry increased correspondingly, but most of it represented increased value-added in the petroleum sector. The contribution of services remained almost constant. The balance of payments remained in deficit because exchange rate and import protection policies created an anti-export bias. Budget deficits persisted for structural reasons—expenditures increased in line with domestic inflation, while revenues depended upon exogenous sources (e.g. revenues from Suez Canal traffic, petroleum exports, foreign aid) and increased more slowly. The ratio of exports of goods and services to GDP was 17 per cent in 1965 and 14 in 2015; that of imports to GDP 21 and 23 per cent; of taxes to GDP 13 and 14 per cent. An important structural change in the labour market was a substantial increase in informal sector employment. The slowness of the structural transformations is largely attributable to an implicit political-economy compact whereby regimes provided the population large subsidies on goods and services and low taxation in return for political acceptance.","PeriodicalId":153188,"journal":{"name":"The Oxford Handbook of Structural Transformation","volume":"76 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-02-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114967376","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Growth and Structural Transformation in Viet Nam","authors":"Dang Thi Thu Hoai, F. Tarp, D. V. Seventer","doi":"10.1093/OXFORDHB/9780198793847.013.22","DOIUrl":"https://doi.org/10.1093/OXFORDHB/9780198793847.013.22","url":null,"abstract":"This chapter examines structural transformation and change in the Vietnamese economy during the reform period of 2000–12. Using two Social Accounting Matrices (SAMs), one for the year 2000 and another for the year 2012, the chapter shows that Viet Nam’s economic structure underwent significant changes during this period, mainly due to external demand and international economic integration. Indeed, the Vietnamese economy has become internally more integrated and shifted from primary production (agriculture) towards more value adding manufacturing activities. Viet Nam’s experience with structural transformation provides important lessons on how success can be pursued under globalization. The chapter concludes with some policy recommendations, such as the need for Viet Nam to transform the economic growth model toward a more sustainable one which does not rely so much on expanding capital and labour.","PeriodicalId":153188,"journal":{"name":"The Oxford Handbook of Structural Transformation","volume":"54 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-02-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127450224","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Measuring Structural Change","authors":"Célestin Monga, Samuel Standaert","doi":"10.1093/OXFORDHB/9780198793847.013.15","DOIUrl":"https://doi.org/10.1093/OXFORDHB/9780198793847.013.15","url":null,"abstract":"This chapter examines the specific problems that arise when creating an index of structural change and development, and offers recommendations to address them. It first considers the four steps to composing a policy index and an outcome index: define what the index is trying to measure; identify suitable indicators that track (parts of) the definition decided upon in the first step; normalize the individual indicators and aggregate them into the final index; and analyse the index and report on the results. The chapter then discusses traditional approaches to measuring structural transformation, along with their shortcomings, before introducing a new approach. Insights from New Structural Economics are highlighted, including the argument that the desired structural characteristics of countries are determined by their comparative advantage, which in turn depends on their level of development.","PeriodicalId":153188,"journal":{"name":"The Oxford Handbook of Structural Transformation","volume":"11 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-02-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125554935","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"India’s Path to Structural Transformation","authors":"Deepak Nayyar","doi":"10.1093/OXFORDHB/9780198793847.013.20","DOIUrl":"https://doi.org/10.1093/OXFORDHB/9780198793847.013.20","url":null,"abstract":"This chapter examines the process of structural change in India since 1950 and compares its path to structural transformation with those of other countries. It first introduces an analytical framework to explore the relationship between economic growth and structural change, in theory and history, to identify directions of causation. It then considers significant changes in the composition of output and employment, revealing two discernible phases when economic growth drove structural change and vice versa. The first phase covered 1950–80, characterized by slow and modest structural change and in which the primary sector, essentially agriculture, declined in relative importance, to be replaced by the secondary sector, led by manufacturing. The second phase lasted between 1980 and 2010, when structural change was faster and the reduced share of agriculture in output and employment was captured primarily by the services sector, and partly by construction, but not by manufacturing. Such services-led-growth, by itself, may not be sustainable in future, so that it is necessary to revive industrialization, exploiting the potential synergies between manufacturing and services.","PeriodicalId":153188,"journal":{"name":"The Oxford Handbook of Structural Transformation","volume":"72 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-02-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121412053","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Truth is the Safest Lie","authors":"Célestin Monga","doi":"10.1093/OXFORDHB/9780198793847.013.29","DOIUrl":"https://doi.org/10.1093/OXFORDHB/9780198793847.013.29","url":null,"abstract":"This chapter examines some of the key elements of the knowledge accumulated in the field of development economics. It begins by challenging the dominant paradigms of development thinking, from a fundamental, philosophical perspective. To this end, the chapter uses the experiences of Ghana and other African and developing countries as examples to illustrate the analytical sins committed by development economists. It argues that the failures of those countries in terms of economic development is primarily due to the pervasiveness of bad ideas, which translate into bad advice by influential economists—those in the position to shape or influence policy making. Two major strategic mistakes of development economics are highlighted: first, the wrong model economy and reference and second, the wrong assumptions and preconditions. The chapter concludes with key recommendations for a more appropriate approach aimed at enriching and strengthening development thinking.","PeriodicalId":153188,"journal":{"name":"The Oxford Handbook of Structural Transformation","volume":"40 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-02-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131956647","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Ethiopia","authors":"Arkebe Oqubay","doi":"10.1093/oxfordhb/9780198793847.013.26","DOIUrl":"https://doi.org/10.1093/oxfordhb/9780198793847.013.26","url":null,"abstract":"The recent ‘African Rising’ narrative is detached from reality, and lacks the perspective that growth should be underpinned by structural transformation. Ethiopia has sustained rapid economic growth since 2003, and has practised industrial policies to achieve structural transformation. Embedded in structural transformation perspectives and based on a comparative review of three export-oriented and import-substitution industries, this chapter discusses Ethiopia’s experiment with structural transformation or industrial policies. The Ethiopian experiment shows that structural transformation and industrial policies can work and thrive in low-income African countries such as Ethiopia. However, it also shows that structural transformation and catch-up are a colossal challenge. The Ethiopian experiment reveals that industrial policies matter, and the state can and should play an activist developmental role to foster catch-up and structural transformation. Furthermore, performance and policy outcomes have been uneven, highlighting the importance for policy makers to have a comprehensive understanding of the dynamics and interaction among industrial structure, maximization of linkage effects, and politics/political economy. The experiment emphasizes policy learning, the vital role of learning-by-doing as the prime means of mastering policy making, and policy independence as key ingredient. The Ethiopian experiment suggests that structural transformation and industrial policy perspectives are the principal point of departure for a catch-up by African countries.","PeriodicalId":153188,"journal":{"name":"The Oxford Handbook of Structural Transformation","volume":"82 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-02-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126933020","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Structural Transformation and Manufacturing Employment","authors":"Nobuya Haraguchi","doi":"10.1093/OXFORDHB/9780198793847.013.17","DOIUrl":"https://doi.org/10.1093/OXFORDHB/9780198793847.013.17","url":null,"abstract":"This chapter explores the interrelationships between the growth of value added, employment, and labour productivity at the sub-sector level in the manufacturing sector, with a focus on large countries. Structural change in eighteen manufacturing industries (classified into early, middle and late industries) is estimated using GDP per capita as the independent variable and one of the following three—value added per capita, employment-population ratio (EP ratio), and labour productivity—as the dependent variable. The results reveal three key challenges that must be addressed during manufacturing development in order to create manufacturing jobs, increase the wage level, and sustain the manufacturing employment or slow its pace of decline. One is to develop the wearing apparel industry (including fur and leather products and footwear), and another is to determine which industries are likely to maintain the given level of employment or slow pace of employment decline.","PeriodicalId":153188,"journal":{"name":"The Oxford Handbook of Structural Transformation","volume":"73 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-02-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131575696","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Changing Income Inequality During Structural Transformation","authors":"C. Timmer","doi":"10.1093/OXFORDHB/9780198793847.013.6","DOIUrl":"https://doi.org/10.1093/OXFORDHB/9780198793847.013.6","url":null,"abstract":"This chapter examines the mutual, two-way dependence of structural transformation and food security. It begins with a discussion of analytical perspectives and policy approaches since 1950, focusing on agricultural development and food price stability as the underlying foundations to both structural transformation and food security. It then considers structural transformation in historical perspective, the link between agricultural productivity and structural transformation, and policy challenges that arise along the path of structural transformation. In particular, it analyses the growing gap between labour productivity in rural and urban areas as rapid industrialization takes place, giving rise to widening rural–urban income gaps. The chapter also explains how Asian countries differ from their non-Asian counterparts in the pattern of agricultural employment change with respect to per capita incomes before assessing a market-oriented approach to economic growth and structural transformation, and a stabilization approach to policy initiatives that prevent sharp price increases in staple foods.","PeriodicalId":153188,"journal":{"name":"The Oxford Handbook of Structural Transformation","volume":"74 3-4","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-02-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114122090","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Structural Transformation and Income Distribution","authors":"R. Kanbur","doi":"10.1093/OXFORDHB/9780198793847.013.4","DOIUrl":"https://doi.org/10.1093/OXFORDHB/9780198793847.013.4","url":null,"abstract":"This chapter explores the question of structural transformation and income distribution through the eyes of the pioneer in such analysis, Simon Kuznets. It argues that his 1955 paper stands the test of time in providing insights which are relevant to understanding current phenomena such as the evolution of Chinese inequality. The chapter shows how the Kuznetsian framework can be used, for example, in predicting the differential relationship between urbanization and inequality in India versus China, in assessing the detail of the contribution of sectoral mean and inequality evolution to overall inequality change, and in linking the recent inequality of opportunity literature to rural–urban migration. Thus the original Kuznets framework has the seeds of getting us beyond Kuznets as sometimes (mis)understood in the literature on structural transformation and income distribution.","PeriodicalId":153188,"journal":{"name":"The Oxford Handbook of Structural Transformation","volume":"53 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-02-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128596396","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}