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Industrialisation as an engine of growth in developing countries

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  • Szirmai, Adam

    () (UNU-MERIT)

Abstract

This paper examines the emergence of manufacturing in developing countries in the period 1950-2005. It presents new data on structural change in a sample of 63 developing countries and 16 advanced economies. Industrialisation is seen as a single global process of structural change, in which separate countries follow different paths depending on their initial conditions and moment of their entry into the industrial race. With a few important exceptions such as Mexico, Brazil, India and China, developing countries embarked on industrialisation after 1945. The paper argues that successful catch up in developing countries is associated with industrialisation. It examines the theoretical and empirical for the thesis that industrialisation acts as an engine of growth and attempts to quantify different aspects of this debate. The statistical evidence is not straightforward. Manufacturing has been important for growth in developing countries, but not all expectations of the engine of growth hypothesis are borne out by the data. The more general historical evidence provides more support for the industrialisation thesis.

Suggested Citation

  • Szirmai, Adam, 2009. "Industrialisation as an engine of growth in developing countries," MERIT Working Papers 2009-010, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  • Handle: RePEc:unm:unumer:2009010
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    File URL: https://www.merit.unu.edu/publications/wppdf/2009/wp2009-010.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Wim Naudé, 2011. "Climate Change and Industrial Policy," Sustainability, MDPI, Open Access Journal, vol. 3(7), pages 1-19, July.
    2. Singh, Lakhwinder & Shergill, Baldev Singh, 2009. "Technological Capability, Employment Growth and Industrial Development: A Quantitative Anatomy of Indian Scenario," MPRA Paper 19059, University Library of Munich, Germany.
    3. Lavopa, Alejandro & Szirmai, Adam, 2012. "Industrialization, employment and poverty," MERIT Working Papers 2012-081, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Christiaensen, Luc & Demery, Lionel & Kuhl, Jesper, 2011. "The (evolving) role of agriculture in poverty reduction--An empirical perspective," Journal of Development Economics, Elsevier, vol. 96(2), pages 239-254, November.
    5. Muhammad Qasim & Amatul Razzaq Chaudhary, 2015. "Determinants of Human Development Disparities: A Cross District Analysis of Punjab, Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 54(4), pages 427-446.
    6. Christiaensen, Luc & Todo, Yasuyuki, 2014. "Poverty Reduction During the Rural–Urban Transformation – The Role of the Missing Middle," World Development, Elsevier, vol. 63(C), pages 43-58.
    7. Lavopa, Alejandro, 2011. "The impact of sectoral heterogeneities in economic growth and catching up: Empirical evidence for Latin American manufacturing industries," MERIT Working Papers 2011-075, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    8. Szirmai, Adam, 2012. "Industrialisation as an engine of growth in developing countries, 1950–2005," Structural Change and Economic Dynamics, Elsevier, vol. 23(4), pages 406-420.
    9. Muhammad Qasim & Zahid Pervaiz & A. R. Chaudhary, 2018. "Status of Human Development in Punjab (Pakistan)," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 7(4), pages 138-155, December.
    10. Krammer, Sorin M.S., 2016. "The role of diversification profiles and dyadic characteristics in the formation of technological alliances: Differences between exploitation and exploration in a low-tech industry," Research Policy, Elsevier, vol. 45(2), pages 517-532.
    11. Gebreeyesus, Mulu, 2013. "Industrial Policy and Development in Ethiopia: Evolution and Present Experimentation," WIDER Working Paper Series 125, World Institute for Development Economic Research (UNU-WIDER).
    12. Szirmai, Adam & Verspagen, Bart, 2015. "Manufacturing and economic growth in developing countries, 1950–2005," Structural Change and Economic Dynamics, Elsevier, vol. 34(C), pages 46-59.
    13. Daaniel Vertesy & Adam Szirmai, 2010. "Interrupted Innovation: Innovation System Dynamics in Latecomer Aerospace Industries," Globelics Working Paper Series 2010-02, Globelics - Global Network for Economics of Learning, Innovation, and Competence Building Systems, Aalborg University, Department of Business and Management.
    14. Ha-Joon Chang & Kiryl Zach, 2018. "Industrial development in Asia: Trends in industrialization and industrial policy experiences of developing Asia," WIDER Working Paper Series wp-2018-120, World Institute for Development Economic Research (UNU-WIDER).
    15. Emilia HERMAN, 2011. "The Impact Of The Industrial Sector On Romanian Employment," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 1(6), pages 1-21, October.
    16. NAPO, Fousséni & ADJANDE, Ali Awountchou, 2019. "Diversification des exportations, investissements directs étrangers et croissance économique en Afrique Subsaharienne [Export diversification, foreign direct investment and economic growth in Sub-S," MPRA Paper 95602, University Library of Munich, Germany, revised 08 Jun 2019.
    17. Wim Naudé, 2011. "Climate Change and Industrial Policy," Sustainability, MDPI, Open Access Journal, vol. 3(7), pages 1-19, July.

    More about this item

    Keywords

    Structural Change; Manufacturing; Engine of Growth; Catching Up; Economic Growth;

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • N60 - Economic History - - Manufacturing and Construction - - - General, International, or Comparative

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