Political Economy of Structural Change
Summary
Structural change refers to the reorganisation of economic activity across sectors, typically involving a shift from agriculture to manufacturing and, subsequently, to services. The political economy of structural change examines how power relations, institutions and policy frameworks shape these transitions. Key drivers include technological innovation, shifts in global demand, capital accumulation and labour market dynamics. Political factors—ranging from industrial strategy and trade regimes to social coalitions and distributive conflicts—mediate the pace and direction of transformation. For example, targeted investment in infrastructure and skills can accelerate manufacturing up-scaling, while social resistance to urbanisation can slow service-sector expansion. Structural change has broad implications for inequality, environmental sustainability and long-term growth. In emerging economies, successful transitions often hinge on the alignment of domestic political interests with developmental objectives and on the ability of states to coordinate investment, regulate markets and negotiate international value chains. In advanced economies, questions of de-industrialisation, technological automation and the green transition have renewed interest in how policy and institutional design can steer structural trajectories. Understanding this interplay between economic structures and political agency is essential for designing policies that promote inclusive and resilient growth.
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Political Economy of Structural Change publication trend
The graph below shows the total number of articles in political economy of structural change across all publications each year (not limited to Nature Index journals).
Technical terms
Structural change: The reallocation of economic activity and resources across sectors over time.
Productive structure: The composition and interrelationships of industries and productive activities within an economy.
Systemic interest: The shared incentive of stakeholders to maintain the viability of interconnected economic and social systems.
Growth model: A framework linking patterns of production, consumption, distribution and institutional arrangements that underpin economic expansion.
References
- Vulnerability, Resilience and ‘Systemic Interest’: a Connectivity Approach. Networks and Spatial Economics (2019).
- A Theoretical Review of Socio-Economic Dynamics and Structural Transformation of Society: Traits and Constraints in Validating Response Processes Due to Unpredictable Factors. Economies (2023).
- Political economy revisited: structures and objectives at the systemic level. Economia Politica (2024).
- Nothing new under the sun: the so-called ‘growth model perspective’. European Journal of Economics and Economic Policies Intervention (2023).
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