The current literature shows that the development of Knowledge-Intensive Business Services (KIBS) hinges on high-tech manufacturing. Given the deindustrialization in Western countries and the advance of manufacturing in Asia, this study analyzes how the change in the share of jobs and...

This paper explores macroeconomic policies that can sustain structural change in China and India. A two--sector open--economy model with endogenous productivity growth, demand driven output and income distribution as an important determinant of economic activity is calibrated to a 2000 SAM for...