The study of regional growth paths is a key theme in economic geography and of elemental interest for regional development. This paper addresses the interplay between path-dependent, structural ...forces and the construction and utilization of opportunities through agentic processes. Extending the evolutionary framework, it is argued that not only history but also perceived futures influence agentic processes in the present and thus shape regional development paths. The paper discusses the relevance and interdependencies of three types of agency with distinct theoretical roots, namely Schumpeterian innovative entrepreneurship, institutional entrepreneurship and place-based leadership, as main drivers of regional structural change.
•The pandemic urges us to advancing a new and different framing on industrial policy.•Industrial policy plays a key role to tackle dramatic societal challenges.•We have reached a turning point on ...industrial policy, sustainability and development.•We need a new analytical framework on industrial policy governance and implementation.•Industrial policy in a post-Covid19 era should foster sustainable human development.
National and local societies all around the world are fighting the most dramatic global public health emergency of our time, which has soon become an economic, social and human crisis touching all key dimensions of our lives.
Within an inevitable revamping attention on the need for government intervention to face the challenges raised by the Covid19 pandemic, industrial policy is appearing as a central piece of the puzzle. As production dynamics in every country is highly affected by the crisis, industrial policy is considered part of the response to solve dramatic economic and social problems deriving by extraordinary levels of unemployment, deprivation and poverty.
In this paper, we argue that a turning point on the connection between industrial policy, sustainability and development has been reached, highlighting the need to rethink its theoretical foundations as well as its governance and implementation processes for a new role in our post-Covid 19 societies.
Therefore, the research question underlying this paper deals primarily with the nexus between the debate on industrial policy and its effects in terms of human development, social cohesion and sustainability. For this reason, we attempt at closing the gap between different strands of literature, whose integrated connection leads to a new analytical framework with real-world implications on the role of industrial policy, not only as tool for productive dynamics, but also as a leverage for sustainable human development.
All in all, we aim at contributing to the debate on our post-Covid19 economies and societies in two ways: firstly, by providing a new integrated analytical framework on industrial policy to steer a sustainable structural change of our economies and societies towards sustainable human development; secondly, by identifying preliminary implications on industrial policy governance and implementation, investing in the accurate and transparent design of industrial policy in the post-Covid19 era.
Who introduces structural change in regional economies: Entrepreneurs or existing firms? And do local or nonlocal establishment founders create most novelty in a region? We develop a theoretical ...framework that focuses on the roles different agents play in regional transformation. We then apply this framework, using Swedish matched employer-employee data, to determine how novel the activities of new establishments are to a region. Incumbents mainly reinforce a region's current specialization: incumbent's growth, decline, and industry switching further align them with the rest of the local economy. The unrelated diversification required for structural change mostly originates via new establishments, especially via those with nonlocal roots. Interestingly, although entrepreneurs often introduce novel activities to a local economy, when they do so, their ventures have higher failure rates compared to new subsidiaries of existing firms. Consequently, new subsidiaries manage to create longer-lasting change in regions.
We present a new multi-sector growth model that features nonhomothetic, constant elasticity of substitution preferences, and accommodates long-run demand and supply drivers of structural change for ...an arbitrary number of sectors. The model is consistent with the decline in agriculture, the hump-shaped evolution of manufacturing, and the rise of services over time. We estimate the demand system derived from the model using household-level data from the United States and India, as well as historical aggregatelevel panel data for 39 countries during the postwar period. The estimated model parsimoniously accounts for the broad patterns of sectoral reallocation observed among rich, miracle, and developing economies. Our estimates support the presence of strong nonhomotheticity across time, income levels, and countries. We find that income effects account for the bulk of the within-country evolution of sectoral reallocation.
We assess the empirical importance of changes in income and relative prices for structural transformation in the postwar United States. We explain two natural approaches to the data: sectors may be ...categories of final expenditure or value added; e.g., the service sector may be the final expenditure on services or the value added from service industries. We estimate preferences for each approach and find that with final expenditure income effects are the dominant force behind structural transformation, whereas with value-added categories price effects are more important. We show how the inputoutput structure of the United States can reconcile these findings.
This study analyzes energy intensity trends and drivers in 40 major economies using the WIOD database, a novel harmonized and consistent dataset of input–output table time series accompanied by ...environmental satellite data. We use logarithmic mean Divisia index decomposition to (1) attribute efficiency changes to either changes in technology or changes in the structure of the economy, (2) study trends in global energy intensity between 1995 and 2007, and (3) highlight sectoral and regional differences. For the country analysis we apply the traditional two factor index decomposition approach, while for the global analysis we use a three factor decomposition which includes the consideration of regional structural changes in the global economy. We first show that heterogeneity within each sector across countries is high. These general trends within sectors are dominated by large economies, first and foremost the United States. In most cases, heterogeneity is lower within each country across the different sectors. Regarding changes of energy intensity at the country level, improvements between 1995 and 2007 are largely attributable to technological change while structural change is less important in most countries. Notable exceptions are Japan, the United States, Australia, Taiwan, Mexico and Brazil where a change in the industry mix was the main driver behind the observed energy intensity reduction. At the global level we find that despite a shift of the global economy to more energy-intensive countries, aggregate energy efficiency improved mostly due to technological change.
Urbanization with and without industrialization Gollin, Douglas; Jedwab, Remi; Vollrath, Dietrich
Journal of economic growth (Boston, Mass.),
03/2016, Letnik:
21, Številka:
1
Journal Article
Recenzirano
Odprti dostop
We document a strong positive relationship between natural resource exports and urbanization in a sample of 116 developing nations over the period 1960–2010. In countries that are heavily dependent ...on resource exports, urbanization appears to be concentrated in “consumption cities” where the economies consist primarily of non-tradable services. These contrast with “production cities” that are more dependent on manufacturing in countries that have industrialized. Consumption cities in resource exporters also appear to perform worse along several measures of welfare. We offer a simple model of structural change that can explain the observed patterns of urbanization and the associated differences in city types. We note that although the development literature often assumes that urbanization is synonymous with industrialization, patterns differ markedly across developing countries. We discuss several possible implications for policy.
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