Economic Structure and Performance: Essays in Honor of Hollis B. Chenery briefly reviews the work of Hollis Chenery in the field of economics. This book discusses the underlying themes in Chenery's work, including structure, strategy, adjustment, and models.Organized into four parts encompassing 26 chapters, this book begins with an overview of the patterns of structural change and their relation to growth. This text then examines the objectives, measures, and implementation of policy, as well as administrative capabilities and cultural characteristics. Other chapters compare Chenery's econometric analysis of development patterns with the historical analyses and suggest that the two approaches complement each other. This book discusses as well the persistence of disequilibrium in segments of the economy. The final chapter deals with simple criteria for detecting critical interdependencies and a formula for measuring their welfare consequences.This book is a valuable resource for economists, industrialists, foreign capitalists, and social scientists.

ContributorsPrefacePublications of Hollis B. CheneryPart I Structure 1. The Chenery Analysis and Some Other Considerations Introduction Comparison of Egypt and Korea Differences in Goals Differences in Managing Public Enterprise Differences in Managing the Incentives to Private Enterprise Differences in Managing the Implementation of Policy Differences in the Management of Planning The Cultural Milieu Notes References 2. Typology in Development Theory: Retrospective and Prospects Introduction Convergent Approaches Outlined A Brief Demonstration of the Comparative Historical Analysis Approach Prospects Notes References 3. Patterns of Economic Growth, 1850-1914, or Chenery-Syrquin in Historical Perspective Introduction Method Data Statistical Results: All Countries Comparison of Historical with Contemporary Patterns Typologies of Industrialization Conclusions Appendix A: Summary Definitions of Classificatory Indicators Notes References 4. Resource Reallocation and Productivity Growth Introduction Labor Shifts and the Growth of Labor Productivity: Partial Measures Resource Reallocation and Total Factor Productivity Growth The Gains from Reallocation: Empirical Results Conclusions Appendix A Notes References 5. Class Alliances and Surplus Labor Time Introduction Surplus Labor Time Class and State Incomes Alliance and Conflict Notes References 6. Some Elements of a Marxist Theory of Socialist Economic Development Introduction: Assumptions and Definitions A Model of Socialist and Communist Goals Strategies for Attaining Socialism The Strategy of Socialist Transformation The Strategy of Raising the Productive Forces Combined and Mixed Strategies Productive Forces and Relations of Production Conclusions NotesPart II Strategy 7. Comparative Advantage and Development Policy 20 Years Later Introduction Trade Policy versus Growth, circa 1960 Experience with Export-Led Growth Inner- and Outer-Oriented Strategies Contrasted Why is Performance Different? Summary and Conclusions Notes References 8. Development Problems of the Mineral-Rich Countries Introduction Mineral Policy Problems in General The Nature of Mining Projects The Automatic Adjustment Mechanism in MRCs Some Implications Notes References 9. Step-by-Step Liberalization of a Controlled Economy: Experience in Egypt Liberalization as a Step-by-Step Process The System of Economic Controls in Egypt in the Early 1970s Macroeconomic Trends during Liberalization Liberalization of Exchange Controls and Exchange Rates Liberalization of Arrangements for Private Companies The Liberalization of Other Areas Reasonable Principles for Liberalization Notes References 10. The Future of Incomes Policies Introduction Income Markets Are Imperfect Incomes Policies Are Indispensable Not To Be Restricted to Wages Incomes from Professions; Residual Incomes Social Productivity as a Possible Criterion References 11. Urbanization and Income Distribution: The Case of Taiwan, 1966-1980 Introduction A Classification of Sectors by Degrees of Urbanization Income Disparities by Urbanization Effects of Changes in the Sectoral Distribution on Changes in the Economy Urbanization and the Standard of Living Reasons for the Relatively Equitable Distribution Conclusions Notes References 12. Reciprocal Trade Growth: The Latin American Integration Experience Introduction The Benefits of Economic Integration in a Two-Gap Model The Evolution of the Latin American Free Trade Association Implications Notes ReferencesPart III Adjustment 13. Growth with Limited Supplies of Foreign Exchange: A Reappraisal of the Two-Gap Model Introduction Growth and Aid Growth and Debt Conclusions Notes References 14. Capital, Foreign Exchange, and Growth: The Two-Gap and Labor-Income-Floor Views Introduction The Simplified LIF and Two-Gap Models The Impact of Aid on the Economy Impacts of Aid in the LIF and Two-Gap Models: A Comparison Conclusion Notes References 15. What Role Does Equity Play in the International Distribution of Development Aid? Introduction The Model Functional Forms Data Basic Estimates with Neither Country-Specific Nor Period Effects Extended Model Estimates with Country-Specific and Year-Specific Effects Summary Notes References 16. Adjustment Policies and Development Strategies in Sub-Saharan Africa, 1973-1978 Introduction Analyzing External Shocks and Adjustment Policies in Oil-Importing Sub-Saharan African Countries The Balance-of-Payments Effects of External Shocks The Balance-of-Payments Effects of the Policies Applied Alternative Development Strategies: An Evaluation Conclusions Notes References 17. The 1940s in Latin America Introduction External Shocks and Trends Policies Performance The 1940s Legacy References 18. Petrodollars and the Different Growth Performance of Industrial and Middle-Income Countries in the 1970s Introduction Production, Investment, and the Balance of Payment Determining the Real Interest Rate in a Multicountry Model The Different Response of Industrial and Middle-Income Countries Comparative Empirical Evidence Concluding Remarks Notes References 19. A Multisector Approach to Global Econometric Modeling, with Special Reference to Heavy Industries Introduction The Model Empirical Results Global Simulation of the U.S. Discount Rate Reduction Concluding Remarks Notes ReferencesPart IV Models 20. North-South Trade, Capital Flows, and Economic Growth: An Almost Neoclassical Model Introduction Key Assumptions: Single-Period Constraints Intertemporal Relations Numerical Assumptions Reference Case Results Alternative Rates of Capital Flows Extensions and Suggestions for Additional Research References 21. Equilibrium and Prices in Multisector Models Introduction Optimization and Market Equilibrium Competitive Equilibrium Models Model Specification and Empirical Solution Prices in Planning Models Macroeconomic Equilibrium Conclusion Notes References 22. On the Uses and Abuses of Economywide Models in Development Policy Analysis Introduction CGEs as Static Models Time and Money Income Distribution Some Possible Uses of CGEs Consistent Plans Concluding Discussion Notes References 23. Consequences of Changes in Subsidy Policy: The Egyptian Case Introduction The Magnitude and Distribution of Subsidies in Egypt Microeconomic Theory and the Design of Tests of Changes in Subsidy Policy Tests of the Consequences of Subsidy Adjustments Conclusions Notes References 24. Macroeconomic Adjustment in a Computable General Equilibrium Model for India Introduction Real-Side Adjustment Adjustment with Several Sectors Money and Interest The India Model (Jacobian) Numerical Results: Investment Increase and Devaluation The Role of Money Further Observations Notes References 25. Active Life Profiles for Different Social Groups Principles of Construction The Background to the Development of Life Profiles The International Research Program Practical Problems Preliminary Results Index Number Construction Research Possibilities Costs and Benefits of Constructing Life Profiles Notes References Appendix: Life Profiles and Transition Matrices in Organizing Sociodemographic Data (by Richard Stone) 26. "The Interdependence of Investment Decisions" Revisited Introduction Statement of the Mixed Integer Programming Model A Criterion for Isolating Make-Buy Interdependence Cost Implications of Neglecting Interdependence Extensions and Limitations Appendix: An Algorithm for Solution cum Problem Reduction Notes ReferencesIndex