Abstract
AbstractThis paper analyses a simple model of a small economy with agricultural and non‐agricultural sectors to study how opening to international trade affects structural transformation and output growth. In particular, we ask whether effects from accelerated structural transformation after opening to trade is large enough to account for the explosive growth patterns observed in newly industrialised economies. A simulation result suggests that the model‐generated magnitude of growth is comparable to ‘growth miracles’ experienced in newly industrialised economies. Trade policies, relative productivity between agriculture and non‐agriculture, and the persistence of structural transformation process jointly affect the growth dynamics after opening.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
