What is the Structural and Temporal Change Theory in Economics?

Structural and temporal change focus upon local and regional development as historical and evolutionary processes, sometimes incorporating periods of structural or systemic change. Theories of structural and temporal change have taken a broader view, encompassing production, technology, consumption and institutions of government and governance. It asserts that through time, regions and nations are moving through progressively more advanced stages of economic growth and development from agriculture to manufacturing to services to quaternary or knowledge-based forms of development Regional convergence is considered more likely in the later stages of development. It focuses on the temporal evolution of local and regional industrial structures and their relation to local and regional development.  Geographical variations in spatial factor costs are linked to the differential stages of product and industry life cycles through the product cycle theory. Decentralisation to exploit relatively cheaper labor in underdeveloped regions and nations occur with potential export back into the core regions that, by this stage in the cycle, have already developed new products to restart the process.

The post What is the Structural and Temporal Change Theory in Economics? appeared first on interaksyonph.