Economic development and structural change: The role of the service sector

This paper provides evidence on patterns of structural change during development, examining in particular how cross‐section studies can accommodate the recent evidence on ‘de‐industralisation’ in many developed countries. It is argued that functional forms used previously are now inappropriate and new functional forms are proposed. It is found, using these functional forms, that empirical evidence supports the existence of clear patterns of structural change across developed and developing countries.