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Heterogeneous Paths of Industrialization

Author

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  • Federico Huneeus
  • Richard Rogerson

Abstract

Industrialization experiences differ substantially across countries. We use a benchmark model of structural change to shed light on the sources of this heterogeneity and, in particular, the phenomenon of premature deindustrialization. Our analysis leads to three key findings. First, benchmark models of structural change robustly generate hump-shaped patterns for the evolution of the industrial sector. Second, heterogeneous patterns of catch-up in sectoral productivities across countries can generate variation in industrialization experiences similar to those found in the data, including premature deindustrialization. Third, differences in the rate of agricultural productivity growth across economies can account for the majority of the variation in peak industrial employment shares.

Suggested Citation

  • Federico Huneeus & Richard Rogerson, 2024. "Heterogeneous Paths of Industrialization," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 91(3), pages 1746-1774.
    • Handle: RePEc:oup:restud:v:91:y:2024:i:3:p:1746-1774.
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    File URL: http://hdl.handle.net/10.1093/restud/rdad066
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    Cited by:

    1. Federico Huneeus & Richard Rogerson, 2024. "Heterogeneous Paths of Industrialization," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 91(3), pages 1746-1774.
    2. Liu, Laihui & An, Suxia, 2023. "Deindustrialization and the incidence of poverty: Empirical evidence from developing countries," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    3. Desbordes, Rodolphe & Eberhardt, Markus, 2024. "Climate change and economic prosperity: Evidence from a flexible damage function," Journal of Environmental Economics and Management, Elsevier, vol. 125(C).
    4. Richard Grabowski & Sharmistha Self, 2022. "Role of agricultural productivity growth in economic development: the neglected impact on institutional quality in Africa," Evolutionary and Institutional Economics Review, Springer, vol. 19(2), pages 681-700, September.
    5. Hagen Kruse & Emmanuel Mensah & Kunal Sen & Gaaitzen Vries, 2023. "A Manufacturing (Re)Naissance? Industrialization in the Developing World," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 71(2), pages 439-473, June.
    6. Liu, Xiaoqian & Cifuentes-Faura, Javier & Yang, Xiaodong & Pan, Junyu, 2025. "The green innovation effect of industrial robot applications: Evidence from Chinese manufacturing companies," Technological Forecasting and Social Change, Elsevier, vol. 210(C).
    7. Saumik Paul & Kunal Sen, 2025. "Kuznets in the twenty-first century: Mexico and United States compared," WIDER Working Paper Series wp-2025-13, World Institute for Development Economic Research (UNU-WIDER).
    8. Behrer,Arnold Patrick, 2023. "Man or Machine ? Environmental Consequences of Wage Driven Mechanization in Indian Agriculture," Policy Research Working Paper Series 10376, The World Bank.
    9. Ogilvie, Sheilagh & Edwards, Jeremy & Küpker, Markus, 2022. "Economically relevant human capital or multi-purpose consumption good? Book ownership in pre-modern Württemberg," Explorations in Economic History, Elsevier, vol. 83(C).
    10. Chiplunkar,Gaurav & Tatjana Kleineberg, 2025. "Gender Barriers, Structural Transformation, and Economic Development," Policy Research Working Paper Series 11083, The World Bank.

    More about this item

    Keywords

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    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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