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Beyond Balanced Growth
Author:
Mr. Sergio Rebelonull

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Ms. Piyabha Kongsamut
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Danyang Xienull

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Series:
IMF Working Papers
Volume/Issue:
Volume 2001: Issue 085
Language:
English
Publication Date:
01 Jun 2001
DOI:
https://doi.org/10.5089/9781451850758.001
ISBN:
9781451850758
ISSN:
1018-5941
Pages:
21
Keywords:
WP; growth; structural change; Kaldor facts; GBG path; Kaldor fact; output share; employment share; GBG constraint; production structure; Sustainable growth; Real interest rates; Agricultural sector; Manufacturing
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Balanced growth models are commonly used in macroeconomics because they are consistent with the well-known Kaldor facts regarding economic growth. These models, however, are inconsistent with one of the most striking regularities of the growth process—the massive reallocation of labor from agriculture into manufacturing and services. This paper presents a simple model consistent with both the Kaldor facts and the dynamics of sectoral labor reallocation. The model shows that balanced growth can be consistent with structural change.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2001: Issue 085