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Industrialization Lessons from BRICS: A Comparative Analysis

Author

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  • Naudé, Wim

    (University College Cork)

  • 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.

Suggested Citation

  • Naudé, Wim & Szirmai, Adam & Lavopa, Alejandro, 2013. "Industrialization Lessons from BRICS: A Comparative Analysis," IZA Discussion Papers 7543, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp7543
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    2. Xiaobo Shen & Boqiang Lin, 2017. "Total Factor Energy Efficiency of China’s Industrial Sector: A Stochastic Frontier Analysis," Sustainability, MDPI, Open Access Journal, vol. 9(4), pages 1-17, April.
    3. Efobi, Uchenna & Asongu, Simplice & Okafor, Chinelo & Tchamyou, Vanessa & Tanankem, Belmondo, 2016. "Diaspora Remittance Inflow, Financial Development and the Industrialisation of Africa," MPRA Paper 76121, University Library of Munich, Germany.
    4. Efobi, Uchenna & Asongu, Simplice & Okafor, Chinelo & Tchamyou, Vanessa & Tanankem, Belmondo, 2019. "Remittances, finance and industrialisation in Africa," Journal of Multinational Financial Management, Elsevier, vol. 49(C), pages 54-66.
    5. Sher Singh Verick, 2016. "Manufacturing and jobs: is India different?," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 59(1), pages 57-84, March.
    6. Simplice A. Asongu & Nicholas M. Odhiambo, 2020. "Remittances, the diffusion of information and industrialisation in Africa," Contemporary Social Science, Taylor & Francis Journals, vol. 15(1), pages 98-117, January.
    7. Simplice A. Asongu & Joseph Nnanna & Rexon T. Nting, 2021. "A bad turn deserves another: linkages between terrorism, capital flight and industrialisation," Working Papers 21/011, European Xtramile Centre of African Studies (EXCAS).
    8. Kutu Adebayo Augustine & Ngalawa Harold, 2017. "Monetary Policy and Industrial Output in the BRICS Countries: A Markov-Switching Model," Folia Oeconomica Stetinensia, Sciendo, vol. 17(2), pages 35-55, December.
    9. Simplice Asongu & Nicholas Biekpe & Vanessa Tchamyou, 2019. "Remittances, ICT and doing business in Sub-Saharan Africa," Journal of Economic Studies, Emerald Group Publishing, vol. 46(1), pages 35-54, January.
    10. Sher Singh Verick, 2017. "The puzzles and contradictions of the Indian labour market: What will the future of work look like?," ASARC Working Papers 2017-02, The Australian National University, Australia South Asia Research Centre.
    11. Jacob, Jojo & Sasso, Simone, 2015. "Foreign direct investment and technology spillovers in low and middle-income countries: A comparative cross-sectoral analysis," MERIT Working Papers 2015-035, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    12. repec:era:wpaper:dp-2015-51 is not listed on IDEAS
    13. Tregenna, Fiona, 2015. "Deindustrialisation, structural change and sustainable economic growth," MERIT Working Papers 2015-032, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    14. Yılmaz Akyüz, 2015. "Foreign Direct Investment, Investment Agreements, and Economic Development: Myths and Realities," Ekonomi-tek - International Economics Journal, Turkish Economic Association, vol. 4(1), pages 1-47, January.

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    More about this item

    Keywords

    foreign direct investment; multinational enterprises; industrialization; technology; innovation; entrepreneurship; Brazil; Russia; China; India; South Africa;
    All these keywords.

    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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