ABSTRACT

The analysis of structural economic dynamics has led to a distinctive line of research in economic theory. 2 Most work in this field has examined long- and medium-term trajectories any given economic system is likely to follow on the basis of certain structural conditions and dynamic impulses. However, the identification of structural change trajectories is also central to effective decision-making at critical points along dynamic paths. The aim of this chapter is to outline a conceptual framework to address the issue of strategic decision-making under conditions of structural economic dynamics – i.e. to identify requirements for effective decision-making when the economic system undergoes the transformation of fundamental relationships among its component subsystems. To this purpose, the chapter highlights that effective decision-making depends on adequate specification of economic structure, and that a structural specification adequate to a certain purpose (for instance, to intervention along a given structural change trajectory within a given time horizon) may be inadequate when a different purpose is envisaged.