How has Globalization Affected the Economic Growth, Structural Change, and Poverty Reduction Linkages?

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This chapter focuses on the complex relationships between structural change on the one hand and employment creation and poverty reduction on the other hand. It argues that globalization may have ambiguous effects on the relationships between growth and structural change by distorting domestic intersectoral linkages in the developing economies. As a result, structural change accompanied by the growth of output may not necessarily create additional employment and contribute to reductions in poverty. The key hypothesis of the chapter is that if economic growth is accompanied by productivity-enhancing structural change, it serves to generate high-productivity employment and ensures poverty reduction. The empirical results provide weak support for the hypothesis.
Original languageEnglish
Title of host publicationNew Perspectives on Structural Change : Causes and Consequences of Structural Change in the Global Economy
EditorsLudovico Alcorta, Neil Foster-McGregor, Bart Verspagen, Adam Szirmai
Number of pages26
Place of PublicationOxford
PublisherOxford University Press
Publication date2021
ISBN (Print)9780198850113
ISBN (Electronic)9780198850113
Publication statusPublished - 2021


  • Poverty
  • Globalization
  • Structural change
  • Employment
  • Growth

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