New Structural Economics
Developed by Justin Yifu Lin, *New Structural Economics* redefines how developing nations achieve sustainable, inclusive growth by moving past failed ideologies of either heavy government intervention or unfettered market liberalization. At its core, the theory argues that a country’s optimal industrial structure is determined by its unique factor endowment structure—land, labor, capital, and infrastructure. By aligning industries with these inherent strengths, firms gain competitive viability, generate economic surpluses, and accelerate capital accumulation to drive gradual industrial upgrading. The book introduces the Growth Identification and Facilitation Framework (GIFF), a step-by-step tool for governments to identify promising industries, address bottlenecks like poor infrastructure or limited financing, and support pioneer firms without distorting markets. Real-world case studies, including Nigeria’s economic transition and East Asia’s rapid growth, illustrate how balancing market efficiency with targeted government guidance can unlock catch-up advantages, reduce poverty, and create stable employment.