ABSTRACT
The analysis of macroeconomic growth phenomena and the complex relationship with sectoral dynamics is central in the oeuvre of Harald Hagemann. With his unique and comprehensive knowledge in the history of economic thought, Harald Hagemann precisely reveals the weak points of mainstream theoretical growth models. Very much inspired by his contributions on the Pasinetti approach (e.g. Hagemann 2011), we apply for this Festschrift in honour of Harald Hagemann our model of economic growth by the emergence of new industries to explore the interplay of two concepts by Joseph A. Schumpeter, namely creation and destruction. Although creative destruction is probably the best known concept of Schumpeter, it can be meaningfully applied to growth theory only by invoking Pasinetti’s ideas on structural change.
