chapter  1
Structural Change
Pages 26

The development of an economy is characterised by changes in the structure of economic activity. Some sectors of the economy grow faster than others so that over time there are marked changes in their relative importance. The causes of such change are complex but include: changes in the pattern of demand; the invention of new products and processes; the different opportunities across sectors for technical progress and factor substitution; the changing importance of the role of government in economic activity, and the changing patterns of international competitiveness.