A basic and permanent (as opposed to cyclical) change in the economy. Structural change results from changes in trading practices (e.g., because of technological advancement, changes in consumer behaviour, the emergence of new competitors and trade liberalization). It may take the form of changes in the relative importance of particular industries, in the economic strength of regions, and in the occupational or skill mix of the labour force.
Structural change of an economy refers to a long-term widespread change of the fundamental structure, rather than microscale or short-term output and employment. For example, a subsistence economy is transformed into a manufacturing economy, or a regulated mixed economy is liberalized. A current structural change in the world economy is globalization.