Economic structural change refers to a long-term shift in the fundamental structure of an economy, which is often linked to growth and economic development. For example, a subsistence economy may be transformed into a manufacturing economy, or a regulated mixed economy is liberalized. A current driver of structural change in the world economy is globalization. Structural change is possible because of the dynamic nature of the economic system.
Patterns and changes in sectoral employment drive demand shifts through the income elasticity. Shifting demand for both locally sourced goods and for imported products is a fundamental part of development. The structural changes that move countries through the development process are often viewed in terms of shifts from primary, to secondary and finally, to tertiary production. Technical progress is seen as crucial in the process of structural change as it involves the obsolescence of skills, vocations, and permanent changes in spending and production resulting in structural unemployment.
Read more about Structural Change: Examples
Famous quotes containing the words structural and/or change:
“The reader uses his eyes as well as or instead of his ears and is in every way encouraged to take a more abstract view of the language he sees. The written or printed sentence lends itself to structural analysis as the spoken does not because the reader’s eye can play back and forth over the words, giving him time to divide the sentence into visually appreciated parts and to reflect on the grammatical function.”
—J. David Bolter (b. 1951)
“I had heard so much about how hard it was supposed to be that, when they were little, I thought it would be horrible when they got married and left. But that’s silly you know. . . . By the time they grow up, they change and you change. Eventually, they’re not the same little kids and you’re not the same mother. It’s as if everything just falls into a pattern and you’re ready.”
—Anonymous Mother. As quoted in Women of a Certain Age, by Lillian B. Rubin, ch. 2 (1979)