Economic diversification: A model of structural economic dynamics and endogenous technological change

摘要

Economic diversification is relevant for poorer developing countries to create jobs and foster economic development. The empirical economic literature has identified several stylized facts about the pattern of diversification of economies, but the development of explanations for those patterns, in general, has been only loosely associated with an economic theory on growth, trade, technology change and structural transformation. Making that connection is relevant because it could inform policymakers in developing countries in designing and implementing policies for promoting diversification. This paper presents a model of structural economic dynamics and endogenous technological change that can replicate empirical regularities related to economic diversification. (C) 2019 Elsevier B.V. All rights reserved.