The study of dynamics in the economy social structures aims to understand evolution in stability and growth, as well as complexity of economic systems. It uncovers a wide range of patterns that merit further investigation, including inhomogeneous development among societies and regions and persistent financial and business instability that occurs during periods of relative stability; patterns of temporal and spatial innovation and technological change; and unbalanced distributions of wealth and income. The complexity of the processes that create these patterns makes understanding them a daunting problem.
The theory of economic structure concentrates on the way that these changes in social structures are interconnected with changes in the economy as a whole. Certain changes are directly a result of growth, while others occur independently or as a result of the initial conditions or other factors that affect both growth and social structures.
The structure of production in a country is a key aspect of the dynamics of an economy. It determines whether it is performing economically. It affects the pace of innovation at the firm level, the extent of diversification of the economy, and the length of ladders of work. It also influences the introduction of new technology and the development of economies and the competitiveness, productivity of workers and the profitability of various goods.
Furthermore, the success of a community is contingent upon its ability to spread the benefits of economic growth across the broad majority of the population and to create stable institutions that stop the concentration of property rights. The rising inequality that results from economic growth is not only dependent on the structure of the economy but also a reflection of the inability of governments to create inclusive institutions and to stop the growing concentration of wealth in a small number of hands.
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