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Big push industrialization: some empirical evidence for East Asia and Eastern Europe

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  • Christine Sauer

    ()
    (University of New Mexico)

  • Geng Li

    ()
    (University of Michigan)

  • Kishore Gawande

    ()
    (Texas A&M University)

Abstract

In this paper we examine some testable implications of growth theories based on threshold externalities and complementarities. Specifically, we use industry data for a set of eight emerging economies in East Asia and Eastern Europe to perform general tests of the big push industrialization hypothesis of Murphy, Shleifer, and Vishny (1989). The preliminary results reported here are generally supportive of the theory. They also suggest that government policy may have played a role in moving an economy from a "bad" to a "good" equilibrium.

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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 15 (2003)
Issue (Month): 9 ()
Pages: 1-7

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Handle: RePEc:ebl:ecbull:eb-03o40005

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Keywords: big push industrialization;

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  1. Ciccone, A. & Matsuyama, K., 1993. "Start-Up Costs and Pecuniary Externalities as Barriers to Economic Development," Papers, Stockholm - International Economic Studies 533, Stockholm - International Economic Studies.
  2. Atish R. Ghosh & Holger Wolf, 1998. "Thresholds and Context Dependence in Growth," NBER Working Papers 6480, National Bureau of Economic Research, Inc.
  3. Kiminori Matsuyama, 1990. "Increasing Returns, Industrialization and Indeterminacy of Equilibrium," Discussion Papers, Northwestern University, Center for Mathematical Studies in Economics and Management Science 878, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  4. Perron, Pierre, 1997. "Further evidence on breaking trend functions in macroeconomic variables," Journal of Econometrics, Elsevier, Elsevier, vol. 80(2), pages 355-385, October.
  5. Azariadis, Costas & Drazen, Allan, 1990. "Threshold Externalities in Economic Development," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 105(2), pages 501-26, May.
  6. Rodrik, Dani, 1996. "Coordination failures and government policy: A model with applications to East Asia and Eastern Europe," Journal of International Economics, Elsevier, Elsevier, vol. 40(1-2), pages 1-22, February.
  7. Larry E. Jones & Rodolfo Manuelli, 1990. "A Convex Model of Equilibrium Growth," NBER Working Papers 3241, National Bureau of Economic Research, Inc.
  8. Murphy, Kevin M. & Shleifer, Andrei & Vishny, Robert W., 1989. "Industrialization and the Big Push," Scholarly Articles 3606235, Harvard University Department of Economics.
  9. Krugman, Paul, 1991. "History versus Expectations," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 106(2), pages 651-67, May.
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Cited by:
  1. Schäfer, Andreas & Steger, Thomas, 2012. "Journey into the unknown? Economic consequences of factor market integration under increasing returns to scale," Working Papers 107, University of Leipzig, Faculty of Economics and Management Science.

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