Non-Linear Dynamic Economic Structure: Infrastructure and Knowledge in a Two-Sector Growth Model

  • Wei-Bin Zhang
Part of the Advances in Spatial and Network Economics book series (ADVS ECONOMICS)


In this chapter we propose a nonlinear dynamic model to analyze interactions between knowledge, infrastructure and economic development. Our approach is developed within the framework of Uzawa’s two-sector model (Uzawa, 1961, 1962). It is well known that Uzawa’s two-sector model has one advantage over the Solow-Swan one-sector growth model, in that the Uzawa model can be used to analyze economic structure. But as knowledge and infrastructure are omitted, it is impossible to discuss how economic structure is affected by knowledge accumulation and governmental intervention in infrastructure construction. We introduce knowledge and infrastructure into the system as “public goods” in order to ascertain the conditions under which it is economically effective for a government to increase infrastructure with network and diffusion properties and to investigate how economic structural changes may take place as a result of accumulated knowledge.


Migration Transportation 


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Andersson, Å.E., C. Anderstig and B. Hårsman, 1990, “Knowledge and Communications Infrastructure and Regional Economic Change”, Regional Science and Urban Economics 20:359–376.CrossRefGoogle Scholar
  2. Andersson, Å.E., T.R. Lakshmanan and W.B. Zhang, 1992, “Technology and Development — Lessons from Success Stories”, Journal of Scientific & Industrial Research 5: 157–171.Google Scholar
  3. Batten, D.F., K. Kobayashi and Å.E. Andersson, 1989, “Knowledge, Nodes and Networks: An Analytical Perspective” in Knowledge and Industrial Organization by Å. E. Andersson, D. F. Batten and C. Karlsson, (eds.), Springer-Verlag, Berlin.Google Scholar
  4. Beckmann, M.J. and T. Puu, 1985, Spatial Economics: Potential, Density, and Flow, North-Holland Publishing Company, Amsterdam.Google Scholar
  5. Chenery, H. and T.N. Srinivasan, (eds.), 1988, Handbook of Development Economics, Vol.1, North-Holland, Amsterdam.Google Scholar
  6. Chenery, H. and T.N. Srinivasan, (eds.), 1989, Handbook of Development Economics, Vol.11, North-Holland, Amsterdam.Google Scholar
  7. Johansson, B. and C. Karlsson, (eds.), 1990, Innovation, Industrial Knowledge and Trade, CERUM, University of UmeåGoogle Scholar
  8. Lakshmanan, T.R., 1989, “Infrastructure and Economic Transformation” in Advances in Spatial Theory and Dynamics by Å.E. Andersson et al., (eds.), North-Holland, Amsterdam.Google Scholar
  9. Snickars, F., 1987, “The Transportation Sector in the Communications Society: Some Analytical Observations” in Transportation Planning in a Changing World by P. Nijkamp and S. Reichmann, (eds.), Cower, Aldershot, Hampshire.Google Scholar
  10. Uzawa, H., 1961, “On a Two-Sector Model of Economic Growth I”, Revievs of Economic Studies XXIX:40–47.CrossRefGoogle Scholar
  11. Uzawa, H., 1962, “On a Two-Sector Model of Economic Growth II”, Review of Economic Studies XXX: 105–118.Google Scholar
  12. Westin, L., 1990, “Vintage Models of Spatial Structural Change”, Umeå Economic Studies No. 227, University of Umeå.Google Scholar
  13. Zhang, W.B., 1990, “Brain Drain and Economic Cycles with International Migration”, Journal of Development Economics 32:191–203.CrossRefGoogle Scholar
  14. Zhang, W.B., 1991, “Regional Dynamics with Creativity and Knowledge Diffusion”, The Annals of Regional Science 25:179–191.CrossRefGoogle Scholar
  15. Zhang, W.B., 1992, “A Development Model of Developing Economies with Capital and Knowledge Accumulation”, Journal of Economics 55:43–63.Google Scholar

Copyright information

© Springer-Verlag Berlin · Heidelberg 1994

Authors and Affiliations

  • Wei-Bin Zhang
    • 1
  1. 1.Institute for Future StudiesStockholmSweden

Personalised recommendations