Unbalanced Growth
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NBER Working Paper No. 10899
Issued in November 2004
NBER Program(s): ITI
We study a model designed to understand the concept of unbalanced growth. We define leading sectors to be those that raise the profits from industrialization for other sectors the most. We identify the leading sectors and show that subsidizing them in sequences will raise welfare if the future is not discounted too strongly.
Published: Krishna, Kala and Cesar A. Perez. "Unbalanced Growth," Canadian Journal of Economics, 2005, v38(3,Aug), 832-851.
This paper is available as PDF (387 K) or via email.
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