NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Unbalanced Growth

Kala Krishna, Cesar A. Perez

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.

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Document Object Identifier (DOI): 10.3386/w10899

Published: Krishna, Kala and Cesar A. Perez. "Unbalanced Growth," Canadian Journal of Economics, 2005, v38(3,Aug), 832-851. citation courtesy of

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