Structural Change Theory

Structural Change Theory

Definition:"Structural change is a complex, intertwined phenomenon, not only because economic growth brings about complementary changes in various aspects of the economy, such as the sector compositions of output and employment, organization of industry, etc., but also these changes in turn affect the growth process." (Matsuyama)

Application: Undertstanding structural changes within a community and the impact this structure can have on the community such a job loss, access to resources and migration. So being aware of these strutters within a community and  changes within them.

Adaptation:This theory is widely used in economics to understand the impact structural changes have on the economy.