Sen, K. (2018). What impedes structural transformation in Asia? Asia-Pacific Sustainable Development Journal, 25(1), 1-35.

Abstract

PURPOSES: To identify factors that impede structural transformation in China,  India, and Thailand with special reference to market and government mechanisms.  METHODS: A documentary research with data from case studies in China, India, and Thailand. RESULTS: Transformation of labour from agriculture to manufacturing and services sectors is vital for economic development as can be seen in south Korea and Taiwan. Structural transformation of labour from agriculture sector in which productivity was low was impeded by market failures were market power, credit market imperfection and human capital formation. Government failures, on the other hand, were labour laws, land reform, and migration regulations. THEORY/ POLICY IMPLICATIONS: Government should enhance capabilities of institutions to function more effectively while there are market failures.