Structural transformation is the process by which countries change what they produce, resulting in shifts in output and employment structures, and leading to high-productivity and high-wage activities. Jesus Felipe, Utsav Kumar, and Arnelyn Abdon, Asian Development Bank, Manila, Philippines, use a cross-country growth regression model to project long-term annual average growth rates for 147 countries over the 2010-30 period. They determine that China will be unable to grow at its current 9-10 percent annual pace because of a deceleration in the rate of accumulation of capabilities. India, on the other hand, will surpass China's growth rate.
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