jats:titleAbstract</jats:title>jats:pThis paper presents a multisectoral model based on Kaldor's approach to explain the importance of structural change and cumulative causation. Divergence in countries' growth rates in Kaldorian models are explained jats:italiceither</jats:italic> by different degrees of increasing returns among sectors on the supply side jats:italicor</jats:italic> by different income elasticities of exports and imports on the demand‐side, but it is not explained by jats:italicboth</jats:italic> factors together. In this vein, a multisector growth model that combines different sectoral income elasticities and different sectoral increasing returns is built to explain how structural changes toward high‐tech industries can trigger a process of cumulative causation and ensure higher growth rates in the long run.</jats:p>