A model of unbalanced sectorial growth with application to transition economies

摘要: This paper studies the implications of a dynamic general equilibrium model with three production sectors, which are agriculture, industry and services. Due to assumption increasing returns, our has multiple equilibria. There two stable equilibria: one, in country produces only agricultural goods converges steady state, other, operates all sectors positive unbalanced long-run growth contracting agriculture expanding These predictions agree well real-world development experiences rich poor countries. In context model, we also investigate evolution sectorial composition transition countries find that such move rather than world.