Abstract
The connection between economic structure and the level of development has been one of the most extensively explored themes in both historical and cross-section studies. The most fruitful among these include Clark’s (1940) analysis of the changes in the use of labour with rising income, Kuznets’s study (1957) comparing elements of national accounts, and the more recent works of Chenery (1960) and Chenery and Syrquin (1975) exploring the patterns of development in the post-war period with more refined and improved methods. The central thesis emerging from these comparative studies is that for countries to grow, there must be ‘structural transformation’. This transformation involves shifts in resource allocation from primary to secondary activities, mainly manufacturing. This is borne out by the fact that growth occurs with certain regularities; and the direction of the change is the same, if one looks at one country at different points of time, and at different countries at the same point of time.
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© 1989 International Economic Association
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Panchamukhi, V.R., Nambiar, R.G., Mehta, R. (1989). Structural Change and Economic Growth in Developing Countries. In: Williamson, J.G., Panchamukhi, V.R. (eds) The Balance between Industry and Agriculture in Economic Development. International Economic Association Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-19746-0_3
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