Structural Change

Structural Change

Structural Change and International Trade Economy

In relation to international trade economy, Christopher Mark (1993) provided the following definition of Structural Change: Changes in the relative importance of different sectors of an economy over time, usually measured in terms of their share of output, employment, or total spending. (Since the industrial revolution, structural change in most countries has involved shifts from subsistence agriculture to commercial agriculture, an increase in the relative significance of manufacturing, and, at a later stage, a further shift toward service industries.) In its broadest sense, the term refers to shifts in an economy's sectoral composition –driven by changes in technology, for example –that are more fundamental than temporary changes due to business-cycle and exchange-rate fluctuations. Along with realignments in the relative economic importance of different industries, structural change can also involve shifts between regions of large national economies, and changes in the composition of a country's imports and exports. See also deindustrialization and services.

Resources

See Also

  • International Economic Law
  • Economy
  • Foreign Direct Investment
  • Economic Law

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