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Capital Accumulation and Structural Change in a Small-Open Economy

Author

Listed:
  • Yunfang Hu

    (Kobe University)

  • Kazuo　Mino

    (Kyoto University)

Abstract
This paper explores the relation between capital accumulation and transformation of industrial structure in a small open-economy. Using a three-sector, neoclassical growth model with non-homothetic preferences, we examine dynamic behavior of the small country in the alternative trade regimes. We show that capital accumulation plays a leading role in the process of structural transformation. It is also revealed that the trade pattern significantly affects structural change. We demonstrate that our model can mimic a typical pattern of change in industrial structure that has been observed in many developed economies.

Suggested Citation

  • Yunfang Hu & Kazuo　Mino, 2014. "Capital Accumulation and Structural Change in a Small-Open Economy," KIER Working Papers 900, Kyoto University, Institute of Economic Research.
    • Handle: RePEc:kyo:wpaper:900
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    References listed on IDEAS

    as
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    6. RUI MaO & YANG YAO, 2012. "Structural Change In A Small Open Economy: An Application To South Korea," Pacific Economic Review, Wiley Blackwell, vol. 17(1), pages 29-56, February.
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    Cited by:

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    2. Skerdilajda Zanaj & Patrice Pieretti & Benteng Zou, 2021. "On the long run sustainability of small jurisdictions," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 48(1), pages 15-35, March.
    3. Justin Yifu Lin & Yan Wang, 2016. "Special Section: China's Growing Trade and its Role to the World Economy," Pacific Economic Review, Wiley Blackwell, vol. 21(1), pages 102-117, February.
    4. Makoto Yano & Takashi Komatsubara, 2014. "Participation of Ordinary Investors and Stock Market Quality: A Comparison between Japanese and US Markets," Pacific Economic Review, Wiley Blackwell, vol. 19(5), pages 537-558, December.

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    More about this item

    Keywords

    Structural change; Small-open economy; Trade Pattern; Three-sector model; Non-homothetic preferences;
    All these keywords.

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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