Dynamics of structural transformation: An empirical characterization in the case of China, Malaysia, and Ghana

The paper develops a metric of structural transformation that can account for the production of new varieties of goods embodying advancements in technological know-how and design. Our measure captures the dynamics of an economy's transformation and can be viewed as an extension of Hausmann and Kling...

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Autores principales: Badibanga, Thaddée, Diao, Xinshen, Roe, Terry L., Somwaru, Agapi
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2009
Materias:
Acceso en línea:https://hdl.handle.net/10568/161854
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author Badibanga, Thaddée
Diao, Xinshen
Roe, Terry L.
Somwaru, Agapi
author_browse Badibanga, Thaddée
Diao, Xinshen
Roe, Terry L.
Somwaru, Agapi
author_facet Badibanga, Thaddée
Diao, Xinshen
Roe, Terry L.
Somwaru, Agapi
author_sort Badibanga, Thaddée
collection Repository of Agricultural Research Outputs (CGSpace)
description The paper develops a metric of structural transformation that can account for the production of new varieties of goods embodying advancements in technological know-how and design. Our measure captures the dynamics of an economy's transformation and can be viewed as an extension of Hausmann and Klinger's static measure. We apply our measure to four-digit-level SITC trade data of China, Malaysia, and Ghana over the period 1962-2000. The results show that two important factors characterize the rapid transformation of the Chinese economy: the high proximity of its export basket to three main industrial clusters-capital goods, consumer durable goods, and intermediate inputs-and the increase in the values of the new goods belonging to those three clusters. Malaysia exhibits a similar but more modest pattern. In contrast, the structure of the Ghanaian economy appears unchanged over the entire 1962-2000 period. That economy is dominated by primary goods clusters, and the values of the goods in those clusters have remained relatively low. We also discuss qualitatively the role of policies and institutions in spurring transformation in the three countries.
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spelling CGSpace1618542025-11-06T06:16:31Z Dynamics of structural transformation: An empirical characterization in the case of China, Malaysia, and Ghana Badibanga, Thaddée Diao, Xinshen Roe, Terry L. Somwaru, Agapi technological changes development policies The paper develops a metric of structural transformation that can account for the production of new varieties of goods embodying advancements in technological know-how and design. Our measure captures the dynamics of an economy's transformation and can be viewed as an extension of Hausmann and Klinger's static measure. We apply our measure to four-digit-level SITC trade data of China, Malaysia, and Ghana over the period 1962-2000. The results show that two important factors characterize the rapid transformation of the Chinese economy: the high proximity of its export basket to three main industrial clusters-capital goods, consumer durable goods, and intermediate inputs-and the increase in the values of the new goods belonging to those three clusters. Malaysia exhibits a similar but more modest pattern. In contrast, the structure of the Ghanaian economy appears unchanged over the entire 1962-2000 period. That economy is dominated by primary goods clusters, and the values of the goods in those clusters have remained relatively low. We also discuss qualitatively the role of policies and institutions in spurring transformation in the three countries. 2009 2024-11-21T09:58:50Z 2024-11-21T09:58:50Z Working Paper https://hdl.handle.net/10568/161854 en Open Access application/pdf International Food Policy Research Institute Badibanga, Thaddée; Diao, Xinshen; Roe, Terry L.; Somwaru, Agapi. 2009. Dynamics of structural transformation. IFPRI Discussion Paper 856. https://hdl.handle.net/10568/161854
spellingShingle technological changes
development policies
Badibanga, Thaddée
Diao, Xinshen
Roe, Terry L.
Somwaru, Agapi
Dynamics of structural transformation: An empirical characterization in the case of China, Malaysia, and Ghana
title Dynamics of structural transformation: An empirical characterization in the case of China, Malaysia, and Ghana
title_full Dynamics of structural transformation: An empirical characterization in the case of China, Malaysia, and Ghana
title_fullStr Dynamics of structural transformation: An empirical characterization in the case of China, Malaysia, and Ghana
title_full_unstemmed Dynamics of structural transformation: An empirical characterization in the case of China, Malaysia, and Ghana
title_short Dynamics of structural transformation: An empirical characterization in the case of China, Malaysia, and Ghana
title_sort dynamics of structural transformation an empirical characterization in the case of china malaysia and ghana
topic technological changes
development policies
url https://hdl.handle.net/10568/161854
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