Explaining Structural Change: Actions and Transformations

Theories of structural change identify the range of transformations that are possible under given economic structures. However, in order specify a path of change out of those which are possible, these theories need to make explicit or implicit assumptions about actions taking place within structures. This, we argue, suggests that (i) these theories can identify potential, but not actual paths of change; and (ii) structural change is to some degree open-ended, because existing structures open up a range of possibilities but do not determine the specific actions taken therein. In order to explain which path of structural change is activated under specific historical conditions, we need to study how actual actions take place within structures. The paper suggests a way to do so, pointing to the interface between theory, which highlights possibilities for structural change, and history, which may 'close' such open-endedness in different ways depending on context.