Industrialisation as an engine of growth in developing countries
AbstractThis paper examines the emergence of manufacturing in developing countries in the period 1950-2005. It presents new data on structural change in a sample of 63 developing countries and 16 advanced economies. Industrialisation is seen as a single global process of structural change, in which separate countries follow different paths depending on their initial conditions and moment of their entry into the industrial race. With a few important exceptions such as Mexico, Brazil, India and China, developing countries embarked on industrialisation after 1945. The paper argues that successful catch up in developing countries is associated with industrialisation. It examines the theoretical and empirical for the thesis that industrialisation acts as an engine of growth and attempts to quantify different aspects of this debate. The statistical evidence is not straightforward. Manufacturing has been important for growth in developing countries, but not all expectations of the engine of growth hypothesis are borne out by the data. The more general historical evidence provides more support for the industrialisation thesis.
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Bibliographic InfoPaper provided by United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology in its series UNU-MERIT Working Paper Series with number 010.
Date of creation: 2009
Date of revision:
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Web page: http://www.merit.unu.edu
Structural Change; Manufacturing; Engine of Growth; Catching Up; Economic Growth;
Find related papers by JEL classification:
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
- N60 - Economic History - - Manufacturing and Construction - - - General, International, or Comparative
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-04-13 (All new papers)
- NEP-CWA-2009-04-13 (Central & Western Asia)
- NEP-DEV-2009-04-13 (Development)
- NEP-FDG-2009-04-13 (Financial Development & Growth)
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