ABSTRACT
ln this article Feldman’s model of investment allocation (1928FELDMAN, G. A. (1928). “On the Theory of Growth Rates of National Income”. Planovoc Khoziatstvo, n. 11, 12, translated in N. Spulber (ed.). Foundations of Soviet Strategy for Economic Growth. Bloomington, Indiana, 1964.) is disaggregated to study the implications of introducing the structural change process in it. It means that the analysis proposed here is carried out in a multi-sectoral framework, where both productivity and demand are changing at a distinct rate in each sector. Feldman’s model is then shown to be a particular case of Pasinetti (1981PASINETTI, L. (1981). Structural Change and Economic Growth. Cambridge, Cambridge University Press., 1993PASINETTI, L. (1993). Structural Economic Dynamics. Cambridge, Cambridge University Press.) and an equilibrium path is established. Finally, we analyze the possibility of maintaining equilibrium over time and normative conclusions are obtained.
KEYWORDS:
Structural change; Feldman-Mahalanobis model; Pasinettian model; economic development; multi-sector models