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Please use this identifier to cite or link to this item:
http://hdl.handle.net/1783.1/1853
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| Title: | Development strategy, viability, and economic convergence |
| Authors: | Lin, Justin Yifu |
| Keywords: | Economic development
Development strategy
Role of government
Institution |
| Issue Date: | Oct-2001 |
| Series/Report no.: | Working Papers ; 0103 |
| Abstract: | The paper argues that an economy's industry/technology structure is endogenously determined by the economy's endowment structure. For the convergence to occur, the government of an LDC should target the upgrading of endowment structure instead of the industry/technology structure in its development strategy. If the government chooses to pursue an industry/technology structure, which is inconsistent with the comparative advantage determined by the industry/technology structure, the firms in the government's priority sectors will be nonviable and the government needs to suppress the function of market and distort all kinds of prices as a way to protect the nonviable firms. Convergence will fail to occur as a result. Regression results from cross-country panel data are consistent with the predictions of the above arguments. |
| URI: | http://hdl.handle.net/1783.1/1853 |
| Appears in Collections: | CED Working Papers
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Files in This Item:
| File |
Description |
Size | Format |
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| 0103.pdf | | 447Kb | Adobe PDF | View/Open |
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