Economic Growth and the Change of Industrial Structure

Author Name YOSHIKAWA Hiroshi (Faculty Fellow, RIETI) / ANDO Koichi (Chuo University)
Creation Date/NO. July 2017 17-J-042
Research Project Sustainable Growth and Macroeconomic Policy
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The important parts in generating the economic growth of developed countries are firms' innovation on the micro level and the sectoral shift of resources accompanying it on the macro level. In this paper, we determine the size of the sectoral shift on the product level by using the data of value added in the input-output (IO) table. We regard it as the measure of product innovation and structural change and explore the relationship to macroeconomic growth. We find that the greater the structural change is, the higher the average growth rate becomes. This result holds true over the recent years.