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Premature Deindustrialization Risk in Asian Latecomer Developing Economies

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  • Hiroyuki Taguchi
  • Yuta Tsukada

Abstract

This study examines the risk of premature deindustrialization in latecomer developing countries in Asia, focusing on their manufacturing output ratio. Diverging from the literature that treats Asian economies as a group with comparative advantages in manufacturing, this empirical analysis adopts the latecomer index to demonstrate downward shifts in the latecomers' manufacturing-income relationship, implying a premature deindustrialization risk. Furthermore, it shows that the risk is higher for manufacturing trade-deficit countries (compared with trade-surplus countries) and for South Asian countries (compared with Southeast Asian countries). Therefore, Asian economies should improve their logistics performance for greater global value chain participation to avoid premature deindustrialization.

Suggested Citation

  • Hiroyuki Taguchi & Yuta Tsukada, 2022. "Premature Deindustrialization Risk in Asian Latecomer Developing Economies," Asian Economic Papers, MIT Press, vol. 21(2), pages 61-77, Summer.
    • Handle: RePEc:tpr:asiaec:v:21:y:2022:i:2:p:61-77
    DOI: 10.1162/asep_a_00851
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    Cited by:

    1. Lar, Ni & Taguchi, Hiroyuki, 2023. "Premature deindustrialization or reindustrialization: The case of China’s latecomer provinces," MPRA Paper 118423, University Library of Munich, Germany.
    2. Taguchi, Hiroyuki, 2023. "Premature deindustrialization: an empirical analysis in latecomer developing countries," MPRA Paper 118346, University Library of Munich, Germany.
    3. Destek, Mehmet Akif & Hossain, Mohammad Razib & Khan, Zeeshan, 2023. "Premature Deindustrialization and Environmental Degradation," MPRA Paper 117737, University Library of Munich, Germany.

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