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Book part
Publication date: 11 August 2017

Maria Adelaide Pedrosa da Silva Duarte and Marta Cristina Nunes Simões

European Union (EU) central and eastern economies have gone through a process of structural change since 1989, when the post-communist transition started. This process was…

Abstract

European Union (EU) central and eastern economies have gone through a process of structural change since 1989, when the post-communist transition started. This process was afterwards reinforced by the three EU enlargement waves that took place in 2004, 2007 and 2013. Though exhibiting low levels of aggregate productivity, this group of countries joined the EU with higher levels of human capital than the southern member states, an advantage that should have accelerated real convergence towards the EU15. However, evidence to date suggests that the convergence process came to a halt in 2007–2008 when massive capital inflows stopped, highlighting the fragilities of the growth strategies implemented so far. In these peripheral countries, structural change has been characterised by an expanding services sector alongside growing income inequality. The two strands of literature on these issues highlight that: (a) an expanding services sector may not be detrimental for growth, quite the opposite, depending on services composition and on the capacity of services sub-sectors to incorporate information and communication technologies (ICTs); and (b) inequality is negatively related to growth through the fiscal policy, socio-political instability, borrowing constraints to investment in education and endogenous fertility channels and positively through the savings channel and incentives. We analyse the nexus between structural change, inequality and growth in this group of countries highlighting income inequality as a potential mechanism that connects the other two variables. We provide a descriptive quantitative analysis of the profiles of structural change and income inequality in our sample and apply dynamic panel methods to investigate the existence of causality among services sector expansion, inequality and aggregate productivity considering a maximum period between 1980 and 2010.

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Core-Periphery Patterns Across the European Union
Type: Book
ISBN: 978-1-78714-495-8

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Article
Publication date: 6 July 2015

Muhamed Zulkhibri, Ismaeel Naiya and Reza Ghazal

This paper aims to investigate the relationship between structural change and economic growth for a panel of four developing countries, namely, Malaysia, Nigeria, Turkey…

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18482

Abstract

Purpose

This paper aims to investigate the relationship between structural change and economic growth for a panel of four developing countries, namely, Malaysia, Nigeria, Turkey and Indonesia over 1960-2010.

Design/methodology/approach

The study extent the growth equation by incorporating degree of openness, labour and investment and construct structural change indices – modified Lilien index and the norm of absolute values. It utilizes the recently developed panel cointegration techniques to test and estimate the long-run equilibrium of the growth equation.

Findings

The results confirm that structural change and economic growth are cointegrated at the panel level, indicating the presence of long-run equilibrium relationship. However, the impact of structural change on economic growth seems to be small and evolve slowly.

Originality/value

The findings indicate the need for policymakers to identify the binding constraints that impede growth and the importance of institutionalize policy to encourage investment in productive sectors.

Details

International Journal of Development Issues, vol. 14 no. 2
Type: Research Article
ISSN: 1446-8956

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Article
Publication date: 22 October 2021

Anirban Sanyal and Nirvikar Singh

The Green Revolution transformed agriculture in the Indian State of Punjab, with positive spillovers to the rest of India, but recently the state’s economy has fallen…

Abstract

Purpose

The Green Revolution transformed agriculture in the Indian State of Punjab, with positive spillovers to the rest of India, but recently the state’s economy has fallen dramatically in rankings of per capita state output. Understanding the trajectory of Punjab’s economy has important lessons for all of India. Economic development is typically associated with changes in economic structure, but Punjab has remained relatively reliant on agriculture rather than shifting economic activity to manufacturing and services, where productivity growth might be greater.

Design/methodology/approach

The authors empirically examine structural change in the Punjab economy in the context of structural change and economic growth across the States of India. The authors calculate structural change indices and map their pattern over time. The authors estimate panel regressions and time-varying parameter regressions, as well as performing productivity change decompositions into within-sector and structural changes.

Findings

Panel regressions and time-varying-coefficient regressions suggest a significant positive influence of structural change on state-level growth. In addition, growth positively affected structural change across India’s states. The relative lack of structural change in Punjab’s economy is implicated in its relatively poor recent growth performance. Comparisons with a handful of other states reinforce this conclusion: Punjab’s lack of economic diversification is a plausible explanation for its lagging economic performance.

Originality/value

This paper performs a novel empirical analysis of structural change and growth, simultaneously using three different approaches: panel regressions, time-varying parameter regressions and productivity decompositions. To the best of the authors’ knowledge, it is the only paper we are aware of that combines these three approaches.

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Indian Growth and Development Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1753-8254

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Article
Publication date: 23 October 2007

Gavin M. Schwarz and Arthur D. Shulman

Organizational change theorists tend to focus on substantive changes and frequently ignore or underplay the significance of the features of structural inertia. The effect…

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3725

Abstract

Purpose

Organizational change theorists tend to focus on substantive changes and frequently ignore or underplay the significance of the features of structural inertia. The effect of this preoccupation has minimized our understanding of frequently occurring patterns of limited structural change. The purpose of this paper is to encourage theorizing and debate about limited structural change.

Design/methodology/approach

This paper presents a conceptual explanation of the different patterns of limited structural change that arise in organizations undertaking change. It reviews and comments on how different patterns occur at the organization level as a result of the adjustment of component forces around pattern profiling centers of gravity.

Findings

A pervasive finding in change literature is that organizations tend to fall back on more of the same, even when they undergo some major structural change. The paper proposes a framework encapsulating four competencies that synergistically complement each other as a foundation for explaining different patterns of limited structural change.

Originality/value

The paper argues for advancing theory accounting for limited structural change, moving away from the dichotomy of change as normal and limited change as atypical. Normative rational change actions and bounded change actions interact and coexist in parallel. A focus on explaining limited change is a starting point for advancing our understanding of this coexistence.

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Journal of Organizational Change Management, vol. 20 no. 6
Type: Research Article
ISSN: 0953-4814

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Article
Publication date: 25 January 2019

Denis Stijepic

The three-sector framework (relating to agriculture, manufacturing and services) is one of the major concepts for studying the long-run change of the economic structure…

Abstract

Purpose

The three-sector framework (relating to agriculture, manufacturing and services) is one of the major concepts for studying the long-run change of the economic structure. This paper aims to discuss the system-theoretical classification of the structural change in the three-sector framework and, in particular, its predictability by the Poincaré–Bendixson theory.

Design/methodology/approach

This study compares the assumptions of the Poincaré–Bendixson theory to the typical axioms of structural change modeling, the empirical evidence on the geometrical properties of structural change trajectories and the methodological arguments referring to the laws of structural change.

Findings

The findings support the assumption that the structural change phenomenon is representable by a dynamical system that is predictable by the Poincaré–Bendixson theory. This result implies, among others, that in the long run, structural change is either transitory or cyclical and can be used in further geometrical/topological long-run structural change modeling and prediction.

Originality/value

Although widespread in mathematics, geometrical/topological modeling methods have not been used in modeling and prediction of long-run structural change, despite the fact that they seem to be predestined for this purpose owing to their global, system-theoretical nature, allowing for a reduction of ideology content of predictions and greater robustness of results.

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foresight, vol. 21 no. 2
Type: Research Article
ISSN: 1463-6689

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Article
Publication date: 12 June 2017

Theo Sparreboom

The purpose of this paper is to explore the relationship between advances in educational attainment on the one hand, and structural change in employment on the other, in…

Abstract

Purpose

The purpose of this paper is to explore the relationship between advances in educational attainment on the one hand, and structural change in employment on the other, in four countries in Sub-Saharan Africa for selected periods.

Design/methodology/approach

The paper is based on a decomposition of changes in education intensity, which is complemented by an analysis of rates of return to education. For all countries the analysis is based on labour market microdata from nationally representative household surveys, and on economic data from national accounts.

Findings

It is demonstrated that if countries want to exploit structural change, levels of education need to rise. Low levels of education explain why the increase in educational attainment in Tanzania was barely sufficient to keep up with structural change in this country, and Mozambique would have been in the same situation if structural change would have occurred. In Ghana and Namibia, levels of educational attainment are much higher, and the paper demonstrates how education was used differently to accommodate structural change in these countries. Rates of return to education in all four countries appear consistent with patterns of education intensity.

Research limitations/implications

The analysis demonstrates that labour market monitoring should not be limited to (broad) sectoral aggregates. The analysis of more detailed breakdowns of employment is needed to gain insights into economies and labour markets of countries, including with regard to the role of education.

Originality/value

The paper is original in that an identical methodology is used in four African countries to decompose changes in education intensity, to relate these changes to employment patterns and to calculate rates of return to education. Although such work has been undertaken in individual countries, it is rarely done in a comparative way.

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African Journal of Economic and Management Studies, vol. 8 no. 2
Type: Research Article
ISSN: 2040-0705

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Article
Publication date: 3 October 2016

Age Rosenberg and Margit Keller

The purpose of this paper is to understand how employees make sense of a structural change in a public organisation, in order to understand which practices form this change

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1545

Abstract

Purpose

The purpose of this paper is to understand how employees make sense of a structural change in a public organisation, in order to understand which practices form this change and how individual elements (rules, understandings etc.) may shape the process of such changes.

Design/methodology/approach

The research is based on: a two-wave interview method, where the same individuals from different levels of the organisation were questioned in both 2012 and 2014; and an analysis of the formal documents created during the decision-making process. Schatzki’s (1996) approach is used as the basis to identify teleo-affective structures, practical understandings and rules as constitutive elements of the practices that comprised the structural change in the organisation.

Findings

The analysis revealed two main practices – structural reorganisation and the sharing of information and involving employees – that shaped the process of structural change within the organisation. These practices are formed of positive and negative ways of doing, some of which have become in-house habits and a few which have become rules of the organisation. There were competing understandings and enactments of named elements in the organisation, indicating that organisational practices exist beyond individuals and that it takes a collective effort to change them.

Research limitations/implications

The retrospective interview technique and use of employees’ subjective sense-making did not allow us to fully grasp how practices unfolded during the process of a change to the everyday workings of the organisation, which could only be accomplished by direct observations.

Originality/value

The research highlighted those processes that influence one of the potentially most important changes to any organisation, that of organisation structure – both extensive and compact – which has thus far seldom been studied. The authors empirically tested Schatzki’s (1996) approach to practices and provided a set of categories for analysing practices during such changes.

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Baltic Journal of Management, vol. 11 no. 4
Type: Research Article
ISSN: 1746-5265

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Article
Publication date: 21 November 2018

Kaiming Guo, Jing Hang and Se Yan

Economic theories on structural change focus on factors such as fluctuations in relative prices and income growth. In addition, China’s reform and opening up has also been…

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1139

Abstract

Purpose

Economic theories on structural change focus on factors such as fluctuations in relative prices and income growth. In addition, China’s reform and opening up has also been accompanied by increasing openness, significant fluctuations in investment rates, and frictions in the labor market. Existing literature lacks a unified theoretical framework to assess the relative importance of all these determinants. The paper aims to discuss these issues.

Design/methodology/approach

To incorporate all of the potential determinants of China’s structural change, the authors build a two-country four-sector neoclassical growth model that embeds the multi-sector Eaton and Kortum (2002) model of international trade, complete input-output structure, non-homothetic preference and labor market frictions. The authors decompose the sectoral employment shares into six effects: the Baumol, Engel, investment, international trade, factor intensity and labor market friction effects. Using the data of Chinese economy from 1978 to 2011, the authors perform a quantitative investigation of the six determinants’ effects through the decomposition approach and counterfactual exercises.

Findings

Low-income elasticity of demand, high labor intensity, and the existence of the switching costs are the reasons for the high employment share in the agricultural sector. Technological progress, investment and international trade have comparatively less influence on the proportion difference of employment in the three sectors.

Originality/value

Therefore, to examine the impact on China’s structural change, in addition to Baumol effect and the Engel effect, it is also necessary to consider the impact of three more factors: international trade, investment and switching costs. Therefore, the authors decompose the factors that may influence China’s structural change into the Baumol, Engel, investment, international trade, factor intensity effect and switching cost effects. The authors evaluate these six effects using the decomposition approach and counterfactual exercises.

Details

China Political Economy, vol. 1 no. 1
Type: Research Article
ISSN: 2516-1652

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Article
Publication date: 14 May 2019

Ahmed Othman Rashwan Kholeif and Lisa Jack

This paper aims to use Stones’ strong structuration theory (SST) that combines Giddens’ duality and Archer’s analytical dualism to deal with the paradox of embedded…

Abstract

Purpose

This paper aims to use Stones’ strong structuration theory (SST) that combines Giddens’ duality and Archer’s analytical dualism to deal with the paradox of embedded agency, focussing on resistance, in the budgeting literature. It also applies this framework to an illustrative case study that examines a failed attempt to implement performance-based budgeting (PBB) in the Egyptian Sales Tax Department (ESTD).

Design/methodology/approach

The authors have used SST as an analytical framework. Longitudinal case study data were collected from interviews, observations, discussions and documentary analysis and from publicly available reports and other media issued by the World Bank.

Findings

The SST framework identifies the circumstances in which middle managers as embedded agency have limited possibilities to change their dispositions to act and identify opportunities for emancipation in the wider social context in which they are embedded. The official explanation for the failure to implement PBB in Egypt was obstruction by middle managers. The findings of this study provide an alternative explanation to that published by the World Bank for the failure to institutionalise PBB in Egypt. It was found that the middle managers were the real supporters of PBB. Other parties and existing laws and regulations contributed to the failure of PBB.

Research limitations/implications

As a practical implication of the study, the analysis presented here offers an alternative interpretation of the failure of the Egyptian project for monitoring and evaluation to that published by the World Bank. This case and similar cases may enhance the understanding of how and when monitoring and evaluation technologies should be introduced at the global level to manage conflicts of interest between agencies and beneficiaries.

Originality/value

This paper contributes to the extant management accounting literature on the use of ST in addressing the paradox of embedded agency in making or resisting structural change. It uses SST to integrate Giddens’ ST with critical realist theory, incorporating duality and dualism in a stronger model of structuration. The SST framework offers a means of analysing case studies that result from interactions and conjunctures between different groups of actors at different ontological levels. The paper also examines the issue of embedded agency in budgeting research using an illustrative case study from a developing country, Egypt.

Details

Qualitative Research in Accounting & Management, vol. 16 no. 1
Type: Research Article
ISSN: 1176-6093

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Article
Publication date: 14 October 2021

Fan Gao

Poverty alleviation has been a major theme of China's modernization process since the founding of New China. This paper points out that China's poverty alleviation process…

Abstract

Purpose

Poverty alleviation has been a major theme of China's modernization process since the founding of New China. This paper points out that China's poverty alleviation process presents three stylized facts: “Miraculous” achievements of poverty alleviation have been made on a global scale; the poverty alleviation achievements mainly occurred in the high growth stage after reform and opening up; the poverty alleviation process is accompanied by the structural transformation of the urban–rural dual economy.

Design/methodology/approach

Therefore, a logically consistent analytical framework should form among the structural transformation of the dual economy, economic growth and the achievements in poverty alleviation. In logical deduction, the structural transformation of the dual economy affects rural poverty alleviation through the effects of labor reallocation, agricultural productivity improvement, demographic change and fiscal resource allocation.

Findings

The first two refer to economic growth, and the latter two are alleviation policies. The combination of economic growth and poverty alleviation policies is the main cause for poverty alleviation performance. China's empirical evidence can support the four effects by which the structural transformation of the dual economy affects poverty alleviation.

Originality/value

China's socialist system and its economic system transformation after reform and opening up provide an institutional basis for the effects to come into play. After 2020, China's poverty alleviation strategies will enter the “second-half” phase, namely, the phase of solving the problems of relative poverty in urban and rural areas by adopting conventional methods and establishing long-term mechanisms. This requires the facilitation of the reconnection between poverty alleviation strategies and the structural transformation of the dual economy in terms of development ideas and policy directions.

Details

China Political Economy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2516-1652

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