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Industrialization Lessons from BRICS: A Comparative Analysis

Author Info

  • Naudé, Wim

    ()

    (Maastricht University)

  • Szirmai, Adam

    ()

    (Maastricht University)

  • Lavopa, Alejandro

    (Maastricht University)

Abstract

To date there has been few systematic and comparative empirical analyses of the nature of economic development in Brazil, Russia, India, China and South Africa (BRICS). We contribute to addressing this gap by exploring the patterns of structural change between 1980 and 2010, focusing on the manufacturing sector. We show that three of the BRICS are experiencing de-industrialization (Brazil, Russia and South Africa). China is the only country where an expanding manufacturing sector accounts for a significant part of aggregate growth. We explore the differences in patterns and causes of manufacturing between China and the other BRICS. These differences are down to differences in industrial policy: in China industrial policy supported both foreign and domestic investment for technological catch-up. It is the only country where FDI favoured the manufacturing sector and manufactured exports, and where domestic investment started becoming increasingly important compared to FDI from 1995 onward.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7543.

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Length: 46 pages
Date of creation: Aug 2013
Date of revision:
Handle: RePEc:iza:izadps:dp7543
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Keywords: foreign direct investment; multinational enterprises; industrialization; technology; innovation; entrepreneurship; Brazil; Russia; China; India; South Africa;

Find related papers by JEL classification:

  • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
  • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
  • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
  • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
  • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
  • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
  • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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