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Manufacturing and Economic Development

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  • Adam Szirmai

Abstract

This paper examines the theoretical and empirical evidence for the hypothesis that manufacturing is the main engine of growth in developing countries. The paper opens with an overview of the main arguments supporting the engine of growth hypothesis and then examines each of these arguments using a mix of statistical analysis of secondary data and secondary literature. The paper concludes that manufacturing will continue to be important in accelerating growth and achieving catch-up in developing countries.

Suggested Citation

  • Adam Szirmai, 2011. "Manufacturing and Economic Development," WIDER Working Paper Series wp-2011-075, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2011-075
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    File URL: https://www.wider.unu.edu/sites/default/files/wp2011-075.pdf
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    References listed on IDEAS

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    3. Szirmai,Adam, 2005. "The Dynamics of Socio-Economic Development," Cambridge Books, Cambridge University Press, number 9780521520843, November.
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    6. Jonathan Temple & Ludger Wößmann, 2006. "Dualism and cross-country growth regressions," Journal of Economic Growth, Springer, vol. 11(3), pages 187-228, September.
    7. Dani Rodrik, 2009. "Growth after the Crisis," World Bank Publications - Books, The World Bank Group, number 27937, December.
    8. Bart van Ark & Mary O'Mahoney & Marcel P. Timmer, 2008. "The Productivity Gap between Europe and the United States: Trends and Causes," Journal of Economic Perspectives, American Economic Association, vol. 22(1), pages 25-44, Winter.
    9. Mark Setterfield (ed.), 1999. "Growth, Employment and Inflation," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-27393-5.
    10. World Bank, 2002. "World Development Indicators 2002," World Bank Publications - Books, The World Bank Group, number 13921, December.
    11. Marcel P. Timmer & Gaaitzen J. de Vries, 2009. "Structural change and growth accelerations in Asia and Latin America: a new sectoral data set," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 3(2), pages 165-190, June.
    12. Jochen Hartwig, 2011. "Testing The Baumol–Nordhaus Model With Eu Klems Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 57(3), pages 471-489, September.
    13. Maddison, Angus, 1987. "Growth and Slowdown in Advanced Capitalist Economies: Techniques of Quantitative Assessment," Journal of Economic Literature, American Economic Association, vol. 25(2), pages 649-698, June.
    14. Marcel P. Timmer, 2000. "The Dynamics of Asian Manufacturing," Books, Edward Elgar Publishing, number 1927.
    15. Dirk Pilat, 1994. "The Economics Of Rapid Growth," Books, Edward Elgar Publishing, number 360.
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    Cited by:

    1. Simon Ndicu & Lucy Wacuka, 2017. "The Intensity of Knowledge Capital Investment in Kenya: Evidence from Manufacturing and Service Sectors," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(10), pages 179-188, October.
    2. Maciej Grodzicki, 2013. "Productivity Convergence in Manufacturing in the European Union: The Role of Economic Structure," Research in Economics and Business: Central and Eastern Europe, Tallinn School of Economics and Business Administration, Tallinn University of Technology, vol. 5(2).
    3. Hinh T. Dinh, 2017. "Jobs, Industrialization, and Globalization," Books & Reports, Policy Center for the New South, number 16, December.
    4. Gholamreza Fathipour & Pratibha S Gaikwad, 2018. "The Impact of Structural Changes in the Indian Manufacturing Industries: 1980-2013," Information Management and Business Review, AMH International, vol. 10(2), pages 6-16.

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