Economic Development, Structural Change and Employment Potential

Mahmood A. Zaidi, Sudhin K. Mukhopadhyay

Research output: Contribution to journalArticlepeer-review


Economic development is accompanied with changes in the inter-sectoralflows of intermediate goods. This structural change assumes certain patterns depending on the stage and nature of development of the economy. This paper examines such possible patterns and their implications on the basis of input-output analysis for the USA, Japan and India and suggests that the form of interaction between sectors is unilateral—the matrix is either lower or upper triangular signifying the structure of the economy. It also measures the extent of structural change of the three countries and considers the employment implications of such change.

Original languageEnglish (US)
Pages (from-to)64-74
Number of pages11
JournalThe Journal of Development Studies
Issue number2
StatePublished - Jan 1 1975

Bibliographical note

Funding Information:
* Professor, Industrial Relations Center, University of Minnesota, Minneapolis, Minnesota, **Lecturer in Economics, University of Kalyani, India. A version of this paper was presented at the European Meeting of the Econometric Society, Budapest, 1972. We are indebted to Professors Mario F. Bognanno, James M. Henderson, Vernon W. Ruttan, Calvin D. Siebert, Shuntaro Shishido and Lance Taylor for comments, encouragement and material support in the preparation of this paper. The comments of the participants in the Budapest meeting of the Econometric Society and the Referee on an earlier version of this paper are also gratefully acknowledged. We alone are responsible for the errors that might remain. This study was supported partly by the AID through the Economic Development Center, and partly by the Industrial Relations Center.

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