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HomeHomework HelpeconomicsStructural Change in Economy

Structural Change in Economy

Structural change refers to significant shifts in the composition of an economy, often characterized by the movement of labor and resources from one sector to another, such as from agriculture to manufacturing or services. Economic transition denotes the process through which an economy evolves from one system, such as a planned economy, to another, typically a market-oriented economy, involving changes in institutions, policies, and economic structures.

intermediate
3 hours
Economics
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Overview

Structural change and economic transition are vital concepts in understanding how economies evolve over time. Structural change involves shifts in the economic framework, often driven by technological advancements, globalization, and policy reforms. These changes can lead to new industries emerging ...

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Key Terms

Economic Structure
The organization of different sectors in an economy.

Example: A country with a strong agricultural sector has a different economic structure than one focused on technology.

Structural Change
A significant shift in the economic structure of a country.

Example: The shift from manufacturing to service industries in developed countries.

Transition Economy
An economy that is changing from a planned system to a market-oriented system.

Example: Countries in Eastern Europe after the fall of the Soviet Union.

Industrialization
The process of developing industries in a country or region.

Example: China's rapid industrialization over the past few decades.

Market Reforms
Changes made to improve the efficiency of a market economy.

Example: Privatization of state-owned enterprises in Russia.

Globalization
The process of increased interconnectedness among countries.

Example: The rise of multinational corporations operating in multiple countries.

Related Topics

Economic Development
The process of improving the economic well-being and quality of life for a community.
intermediate
Labor Market Dynamics
The study of how labor markets function and the factors that influence employment.
intermediate
Global Trade Policies
The regulations and agreements that govern international trade.
advanced

Key Concepts

Economic StructureTransition EconomiesIndustrializationMarket Reforms