Structural Transformation In Developed And Developing Countries

Differences in key features of the development process across rich and poor countries can provide clues to the sources of the large variation of cross-country income. Kuznets included structural transformation as one of six stylized facts of economic development, finding that developed countries all followed the same process. In this paper, the author compares structural transformation processes in developed and developing countries. The author finds that developing countries follow distinct structural transformation paths that deviate from that followed by developed countries.