what were speed in changing of industries?
Answers
This paper investigates the interrelation between economic dynamics and the structural
change of production. We survey theoretical arguments why growth depends on structural
change and how growth induces structural change. We then investigate whether the speed of
structural change in manufacturing is empirically related to growth of manufacturing in the
member countries of the European Union, and in the partners in the triad. This underlines the
sectoral composition and its importance for economic growth, thus complementing the other
projects organised within the OECD Growth Project. The empirical data support the idea that
growth and speed of change are related. Most of the indicators of structural change are
significantly related to growth. The correlations seem to increase over time; the fit is much
closer for the most recent years than for the total period. Changing export structures are at
least as closely connected with growth as changes in value added, indicating that changing
structures may be specifically important for external competitiveness and for open economies.
If we want to determine the direction of causality, we find evidence that growth depends on
past structural change more closely than the other way round.