TY - JOUR
T1 - Structural change in an interdependent world
T2 - A global view of manufacturing decline
AU - Matsuyama, Kiminori
PY - 2009/3
Y1 - 2009/3
N2 - This paper presents a simple model of the world economy, in which productivity gains in manufacturing are responsible for the global trend of manufacturing decline, and yet, in a cross-section of countries, faster productivity gains in manufacturing do not necessarily imply faster declines in manufacturing. In doing so, it aims to draw attention to the common pitfall of using the cross-country evidence to test a closed economy model, and argues for a global perspective; in order to understand cross-country patterns of structural change, one needs a world economy model in which the interdependence across countries is explicitly spelled out.
AB - This paper presents a simple model of the world economy, in which productivity gains in manufacturing are responsible for the global trend of manufacturing decline, and yet, in a cross-section of countries, faster productivity gains in manufacturing do not necessarily imply faster declines in manufacturing. In doing so, it aims to draw attention to the common pitfall of using the cross-country evidence to test a closed economy model, and argues for a global perspective; in order to understand cross-country patterns of structural change, one needs a world economy model in which the interdependence across countries is explicitly spelled out.
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U2 - 10.1162/JEEA.2009.7.2-3.478
DO - 10.1162/JEEA.2009.7.2-3.478
M3 - Article
AN - SCOPUS:70349452211
SN - 1542-4766
VL - 7
SP - 478
EP - 486
JO - Journal of the European Economic Association
JF - Journal of the European Economic Association
IS - 2-3
ER -