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Input Chains and Industrialization

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  • Ciccone, Antonio

Abstract

A key aspect of industrialization is the adoption of increasing-returns-to-scale, industrial, technologies. Two other well-documented aspects are that industrial technologies (ITs) are adopted throughout intermediate-input chains and that they use intermediate inputs intensively relative to the technologies they replace. These features of ITs combined imply that countries with access to similar technologies may have very different levels of industrialization and aggregate income, even if the degree of increasing returns to scale at the firm level is relatively small. Furthermore, a minor improvement in the productivity of ITs can trigger full-scale industrialization and a large increase in aggregate income. Copyright 2002 by The Review of Economic Studies Limited

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Article provided by Wiley Blackwell in its journal Review of Economic Studies.

Volume (Year): 69 (2002)
Issue (Month): 3 (July)
Pages: 565-87

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Handle: RePEc:bla:restud:v:69:y:2002:i:3:p:565-87

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  1. Basu, Susanto, 1995. "Intermediate Goods and Business Cycles: Implications for Productivity and Welfare," American Economic Review, American Economic Association, vol. 85(3), pages 512-31, June.
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  8. Kiminori Matsuyama, 1995. "Complementarities and Cumulative Processes in Models of Monopolistic Competition," Journal of Economic Literature, American Economic Association, vol. 33(2), pages 701-729, June.
  9. Gans, Joshua S., 1998. "Time Lags and Indicative Planning in a Dynamic Model of Industrialization," Journal of the Japanese and International Economies, Elsevier, vol. 12(2), pages 103-130, June.
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Cited by:
  1. Douhan, Robin & Nordberg, Anders, 2007. "Is the elephant stepping on its trunk? The problem of India´s unbalanced growth," Working Paper Series 2007:16, Uppsala University, Department of Economics.
  2. Gehringer, Agnieszka, 2010. "Pecuniary knowledge externalities and innovation: Intersectoral linkages and their effects beyond technological spillovers," Center for European, Governance and Economic Development Research Discussion Papers 100, University of Goettingen, Department of Economics.
  3. Charles I. Jones, 2008. "Intermediate Goods, Weak Links, and Superstars: A Theory of Economic Development," NBER Working Papers 13834, National Bureau of Economic Research, Inc.
  4. David K. Levine, 2010. "Production Chains," NBER Working Papers 16571, National Bureau of Economic Research, Inc.
  5. Thomas Strobel, 2013. "Embodied Technology Diffusionand Sectoral ProductivityEvidence for 12 OECD Countries," Ifo Working Paper Series Ifo Working Paper No. 156, Ifo Institute for Economic Research at the University of Munich.
  6. Shiyuan Pan, 2011. "Competition among the elites, property rights protection and economic performance," Journal of Economics, Springer, vol. 104(2), pages 139-158, October.
  7. Marcus Böhme, Rainer Thiele, 2012. "Informal-formal Linkages and Informal Enterprise Performance in Urban West Africa," Kiel Working Papers 1751, Kiel Institute for the World Economy.
  8. Larrosa, Juan MC, 2007. "Optimal growth with intermediate goods interdependence: A difference game approach," MPRA Paper 4675, University Library of Munich, Germany.
  9. W. Diewert & Kevin Fox, 2010. "Malmquist and Törnqvist productivity indexes: returns to scale and technical progress with imperfect competition," Journal of Economics, Springer, vol. 101(1), pages 73-95, September.
  10. Marcus Sundberg, 2012. "Optimal fragmentation in monopolistically competitive industries," The Annals of Regional Science, Springer, vol. 48(1), pages 1-32, February.
  11. Nico Voigtlaender, 2009. "Many Sectors Meet More Skills: Intersectoral Linkages and the Skill Bias of Technology," 2009 Meeting Papers 1136, Society for Economic Dynamics.

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