De-industrialisation:Rowthorn and Wells' Model revisited

This paper presents a simple three-sector model that seeks to establish links between structural change in employment and the level of economic development. The model is a modified version of that of Rowthorn - Wells (1987). The theoretical analysis is supplemented with simple econometric tests which illustrate how the modified Rowthorn - Wells model can be used (i) to motivate empirical estimates of the link between the level of development and structures of employment, and (ii) to illustrate structural distortions under command economies.

De-industrialisation and the post-communist transition:Rowthorn and Wells' model revisited

In this paper we present a simple three-sector model explaining the structural change in employment, which is a modified version of Rowthorn-Wells (1987). We supplement the theoretical analysis with simple econometric tests, which illustrate how the modified Rowthorn-Wells model can be used to (i) motivate empirical estimates of the link between the level of development and structures of employment, (ii) illustrate structural distortions under the command economies, and the structural adjustment that happened during the post-Communist transition. We demonstrate that in the case of these economies, the transition process leads to an adjustment to the employment structures predicted by the model.