Unbalanced Growth
Working Paper 10899
DOI 10.3386/w10899
Issue Date
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 Versions
Krishna, Kala and Cesar A. Perez. "Unbalanced Growth," Canadian Journal of Economics, 2005, v38(3,Aug), 832-851. citation courtesy of