New Structural Economics: A Framework for Rethinking Development and Policy (World Bank Publications) - Softcover

Lin, Justin Yifu

Softcover

ISBN 10: 0821389556 ISBN 13: 9780821389553

Publisher: World Bank Publications, 2012

Synopsis

Economic development is a process of continuous technological innovation and structural transformation. Development thinking is inherently tied to the quest for sustainable growth strategies. This book provides a neoclassical approach for studying the determinants of economic structure and its transformation and draws new insights for development policy. The market is the basic mechanism for effective resource allocation at each level of development. However, economic development as a dynamic process entails structural changes, including industrial upgrading and diversification and corresponding improvements in hard and soft infrastructure. Such upgrading and improvements require coordination and go hand in hand with large externalities to firms' transaction costs and returns to capital investment. Thus, in addition to an effective market mechanism, the government should play an active role in facilitating structural changes. The book provides empirical evidence in support of this framework as well as concrete advice to development practitioners.

Edition details

• Publisher: World Bank Publications
• Publication date: 2012
• Language: English
• ISBN 10: 0821389556
• ISBN 13: 9780821389553
• Binding: Paperback
• Number of pages: 384