Industrialization, employment and poverty
During the post-war period, there was consensus among development theorists that industrialization constituted the prime avenue for economic development. Manufacturing was identified as the main engine of economic growth, economic development and social progress. In recent years, however, the role of manufacturing has been challenged and questions have been raised concerning the continued importance of manufacturing for economic development, catch up and poverty reduction in developing countries. Some observers even argue that we live in an era of service-led growth This report assesses the extent to which these challenges are justified, focusing on the role played by manufacturing with regard to the different dimensions of economic development: growth, employment creation and poverty reduction. The main question addressed in this report is whether or not manufacturing plays an important role in the process of economic growth, the creation of new employment and the alleviation of poverty in the least developed economies and in emerging middle-income countries. This report argues that manufacturing continues to be of considerable importance for economic development, employment creation and the reduction of poverty. Manufacturing is not the only sector of importance in developing countries of the present period. But the relative neglect of industrialization and industrial investment in modern policy debates is not justified. It is a sector which deserves special attention from policy makers and the financial community.
|Date of creation:||2012|
|Contact details of provider:|| Postal: P.O. Box 616, 6200 MD Maastricht|
Phone: (31) (0)43 3883875
Fax: (31) (0)43 3216518
Web page: http://www.merit.unu.edu/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- A. P. Thirlwall, 1983. "A Plain Man's Guide to Kaldor's Growth Laws," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 5(3), pages 345-358, April.
- Suryahadi, Asep & Suryadarma, Daniel & Sumarto, Sudarno, 2009. "The effects of location and sectoral components of economic growth on poverty: Evidence from Indonesia," Journal of Development Economics, Elsevier, vol. 89(1), pages 109-117, May.
- Chakravarty, Sangeeta & Mitra, Arup, 2009. "Is industry still the engine of growth? An econometric study of the organized sector employment in India," Journal of Policy Modeling, Elsevier, vol. 31(1), pages 22-35.
- Bart van Ark & Marcin Piatkowski, 2004.
"Productivity, innovation and ICT in Old and New Europe,"
International Economics and Economic Policy,
Springer, vol. 1(2), pages 215-246, January.
- Ark, Bart van & Piatkowski, Marcin, 2004. "Productivity, innovation and ICT in old and new Europe," GGDC Research Memorandum 200469, Groningen Growth and Development Centre, University of Groningen.
- Miguel Ricaurte, 2009. "Interindustry Wage Differences: An Empirical Review," Working Papers Central Bank of Chile 525, Central Bank of Chile.
- Kyoo-Ho Park & Keun Lee, 2006. "Linking the technological regime to the technological catch-up: analyzing Korea and Taiwan using the US patent data," Industrial and Corporate Change, Oxford University Press, vol. 15(4), pages 715-753, August.
- Ravallion, Martin & Shaohua Chen, 2004.
"China's (uneven) progress against poverty,"
Policy Research Working Paper Series
3408, The World Bank.
- Mamgain, Vaishali, 1999. "Are the Kaldor-Verdoorn Laws Applicable in the Newly Industrializing Countries?," Review of Development Economics, Wiley Blackwell, vol. 3(3), pages 295-309, October.
- Lee, Keun & Lim, Chaisung, 2001. "Technological regimes, catching-up and leapfrogging: findings from the Korean industries," Research Policy, Elsevier, vol. 30(3), pages 459-483, March.
- Raphael Rocha Gouvea & Gilberto Tadeu Lima, 2010.
"Structural change, balance-of-payments constraint, and economic growth: evidence from the multisectoral Thirlwall's law,"
Journal of Post Keynesian Economics,
M.E. Sharpe, Inc., vol. 33(1), pages 169-204, October.
- Raphael Rocha Gouvêa & Gilberto Tadeu Lima, 2011. "Structural Change,Balance-of-Payments Constraint and Economic Growth: Evidence from the Multi-Sectoral Thirlwall’s Law," Anais do XXXVII Encontro Nacional de Economia [Proceedings of the 37th Brazilian Economics Meeting] 74, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
- Dasgupta, Sukti & Singh, Ajit, 2006. "Manufacturing, Services and Premature Deindustrialization in Developing Countries: A Kaldorian Analysis," Working Paper Series RP2006/49, World Institute for Development Economic Research (UNU-WIDER).
- Ajit Singh & Sukti Dasgupta, 2005. "Will services be the new engine of economic growth in India?," ESRC Centre for Business Research - Working Papers wp310, ESRC Centre for Business Research.
- Voskoboynikov, I. & Timmer, M.P. & Vries, G.J. de & Erumban, A. A. & Wu H.X., 2011.
"Deconstructing the BRICs: Structural Transformation and Aggregate Productivity Growth,"
GGDC Research Memorandum
GD-121, Groningen Growth and Development Centre, University of Groningen.
- de Vries, Gaaitzen J. & Erumban, Abdul A. & Timmer, Marcel P. & Voskoboynikov, Ilya & Wu, Harry X., 2012. "Deconstructing the BRICs: Structural transformation and aggregate productivity growth," Journal of Comparative Economics, Elsevier, vol. 40(2), pages 211-227.
- Gaaitzen J. de Vries & Abdul A. Erumban & Marcel P. Timmer & Ilya B. Voskoboynikov & Harry X. Wu, 2011. "Deconstructing The BRICs: Structural Transformation And Aggregate Productivity Growth," HSE Working papers WP BRP 04/EC/2011, National Research University Higher School of Economics.
- Mario Cimoli & Gabriel Porcile & Sebastián Rovira, 2010. "Structural change and the BOP-constraint: why did Latin America fail to converge?," Cambridge Journal of Economics, Oxford University Press, vol. 34(2), pages 389-411, March.
- Jan Fagerberg & Bart Verspagen, 1999. "'Modern Capitalism' in the 1970s and 1980s," Working Papers Archives 1999002, Centre for Technology, Innovation and Culture, University of Oslo.
- Lewis, Blane D., 1991. "A comment on the relative employment-generation capabilities of the manufacturing and service sectors in developing countries," World Development, Elsevier, vol. 19(12), pages 1787-1790, December.
- Rodrik, Dani, 2009. "Growth After the Crisis," CEPR Discussion Papers 7480, C.E.P.R. Discussion Papers.
- S. Necmi, 1999. "Kaldor's growth analysis revisited," Applied Economics, Taylor & Francis Journals, vol. 31(5), pages 653-660.
- Singh, Ajit, 1977. "UK Industry and the World Economy: A Case of De-industrialisation?," Cambridge Journal of Economics, Oxford University Press, vol. 1(2), pages 113-136, June.
- Naudé, Wim & Szirmai, Adam, 2012. "The importance of manufacturing in economic development: Past, present and future perspectives," MERIT Working Papers 041, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- Dollar, David & Kraay, Aart, 2001.
"Growth is good for the poor,"
Policy Research Working Paper Series
2587, The World Bank.
- Heather Wells & Anthony Thirlwall, 2003. "Testing Kaldor's Growth Laws across the Countries of Africa," African Development Review, African Development Bank, vol. 15(2‐3), pages 89-105.
- Yamagata, Tatsufumi, 2006. "The Garment Industry in Cambodia: Its Role in Poverty Reduction through Export-Oriented Development," IDE Discussion Papers 62, Institute of Developing Economies, Japan External Trade Organization(JETRO).
- Thorbecke, Erik & Jung, Hong-Sang, 1996. "A multiplier decomposition method to analyze poverty alleviation," Journal of Development Economics, Elsevier, vol. 48(2), pages 279-300, March.
- Lee, Keun & Kim, Byung-Yeon, 2009. "Both Institutions and Policies Matter but Differently for Different Income Groups of Countries: Determinants of Long-Run Economic Growth Revisited," World Development, Elsevier, vol. 37(3), pages 533-549, March.
- Kevin J. Stiroh, 2001.
"Information technology and the U.S. productivity revival: what do the industry data say?,"
115, Federal Reserve Bank of New York.
- Kevin J. Stiroh, 2002. "Information Technology and the U.S. Productivity Revival: What Do the Industry Data Say?," American Economic Review, American Economic Association, vol. 92(5), pages 1559-1576, December.
- 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.
- Szirmai, Adam & Verspagen, Bart, 2011. "Manufacturing and Economic Growth in Developing Countries, 1950-2005," MERIT Working Papers 069, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- Jesus Felipe, 1998. "The Role of the Manufacturing Sector in Southeast Asian Development: A Test of Kaldor's First Law," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 20(3), pages 463-485, April.
- Szirmai, Adam, 2009. "Industrialisation as an engine of growth in developing countries," MERIT Working Papers 010, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- Fagerberg, Jan & Verspagen, Bart, 2002.
"Technology-gaps, innovation-diffusion and transformation: an evolutionary interpretation,"
Elsevier, vol. 31(8-9), pages 1291-1304, December.
- Jan Fagerberg & Bart Verspagen, 2001. "Technology-Gaps, Innovation-Diffusion And Transformation: An Evolutionary Interpretation," Working Papers 11, Centre for Technology, Innovation and Culture, University of Oslo.
- Engelbrecht, Hans-Jurgen, 1992. "New Perspectives on Intersectoral Relationships between Manufacturing and Services," Economic Change and Restructuring, Springer, vol. 25(2), pages 165-178.
- Ramana Ramaswamy & Bob Rowthorn, 1997. "Deindustrialization; Causes and Implications," IMF Working Papers 97/42, International Monetary Fund.
- Khan, Haider A., 1999. "Sectoral Growth and Poverty Alleviation: A Multiplier Decomposition Technique Applied to South Africa," World Development, Elsevier, vol. 27(3), pages 521-530, March.
- Fiona Tregenna, 2009. "Characterising deindustrialisation: An analysis of changes in manufacturing employment and output internationally," Cambridge Journal of Economics, Oxford University Press, vol. 33(3), pages 433-466, May.
- Rati Ram, 2006. "Growth Elasticity of Poverty: Alternative Estimates and a Note of Caution," Kyklos, Wiley Blackwell, vol. 59(4), pages 601-610, November.
- Drakopoulos, Stavros & Theodossiou, Ioannis, 1991. "Kaldorian Approach to Greek Economic Growth," MPRA Paper 48989, University Library of Munich, Germany.
- Ravallion, Martin & Datt, Gaurav, 1996. "How Important to India's Poor Is the Sectoral Composition of Economic Growth?," World Bank Economic Review, World Bank Group, vol. 10(1), pages 1-25, January.
- John S. L. McCombie, 1983. "Kaldor's Laws in Retrospect," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 5(3), pages 414-429, April.
- Jungsoo Park, 2004. "International and Intersectoral R&D Spillovers in the OECD and East Asian Economies," Economic Inquiry, Western Economic Association International, vol. 42(4), pages 739-757, October.
- Rana Hasan & M. G. Quibria, 2004. "Industry Matters for Poverty: A Critique of Agricultural Fundamentalism," Kyklos, Wiley Blackwell, vol. 57(2), pages 253-264, 05.
- Abbas Valadkhani, 2005. "Cross-country analysis of high employment-generating industries," Applied Economics Letters, Taylor & Francis Journals, vol. 12(14), pages 865-869.
- Cornwall, John, 1976. "Diffusion, Convergence and Kaldor's Laws," Economic Journal, Royal Economic Society, vol. 86(342), pages 307-314, June.
- Park, Se-Hark & Chan, Kenneth S., 1989. "A cross-country input-output analysis of intersectoral relationships between manufacturing and services and their employment implications," World Development, Elsevier, vol. 17(2), pages 199-212, February.
When requesting a correction, please mention this item's handle: RePEc:unm:unumer:2012081. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ad Notten)
If references are entirely missing, you can add them using this form.