E2017005                                                    2017-06-07

Justin Yifu Lin and Yong Wang

Abstract:

In this paper, we first briefly review the current dominant framework for macro-development analysis, which is structureless. Then we explain why structures are important for us to understand economic development and how the existing mainstream literature has largely failed in incorporating economic structures in the most effective way. Next, we formally introduce the theoretical model in Ju, Lin and Wang (2015, Journal of Monetary Economics) as a benchmark model of New Structural Economics, followed by discussions on several extensions to the benchmark model.

Key Words: New Structural Economics, Endowment Structures, Industrial Dynamics, Economic Growth, Viability, Structural Change

JEL Classifications: O11, O14, O33, O41

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