Multisector Models And The Analysis Of Alternative Development Strategies An Application To Korea PDF Download

This paper explores the use of multisector models as tools for analyzing the relationship between alternative development strategies, growth, and structural change in a developing country. The paper first considers the evolution of general equilibrium models used for development planning, including input-output models and the recent computable general equilibrium models. The discussion focuses on the applicability of different models to different institutional and policy environments. In the second part of the paper, two models are used to analyze the macroeconomic and sectoral consequences of alternative development strategies. The two models are applied to the 1963-73 period in South Korea and are then used to simulate the impact of an alternative strategy of inward-looking development based on lower export growth and extensive import substitution. While the broad results are similar, the mechanisms embodied in the two models are quite different. A comparison of the empirical results and of the behavioral assumptions in the two models illustrates the range of issues that can be fruitfully investigated with different types of multisector models.