Industrialization, trade and structural change

It is generally accepted that capital accumulation can help raise per capita income and living standards in an economy simply by allowing a fuller use of underutilized labour and natural resources without altering the efficiency with which resources are utilized. Long-term economic success, however, depends on sustained improvements in productivity; each worker producing more from any given level of effort provides the basis for rising incomes and living standards. In this sense, it is productivity gains, and not simply additional jobs, that characterize a virtuous process of accumulation and growth. Such a process is invariably associated with structural changes in output and employment as a result of both shifts in economic activities across agriculture, industry and services and upgrading to higher value-added activities within each sector through the introduction of new products and processes.

Sustainable Development Goals:

Decent Work and Economic Growth

Partnerships for the Goals