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From manufacturing-led export growth to a twenty-first-century inclusive growth strategy: Explaining the demise of a successful growth model and what to do about it

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  • Joseph E. Stiglitz

Abstract

Success in development over the past half-century was based on manufacturing-led export growth. Because the share of global employment in manufacturing will decline, manufacturing won't play the same role in the coming decades. An increase in manufacturing employment won't suffice to meet the need for new jobs, especially in Africa with its burgeoning population. There has to be another strategy. I deconstruct what enabled manufacturing to generate growth and structural transformation. It simultaneously provided needed foreign exchange, promoted learning, and provided employment.

Suggested Citation

  • Joseph E. Stiglitz, 2018. "From manufacturing-led export growth to a twenty-first-century inclusive growth strategy: Explaining the demise of a successful growth model and what to do about it," WIDER Working Paper Series wp-2018-176, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:wp-2018-176
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    References listed on IDEAS

    as
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    2. de Janvry, Alain & Sadoulet, Elisabeth, 2020. "Using agriculture for development: Supply- and demand-side approaches," World Development, Elsevier, vol. 133(C).
    3. Anton Korinek & Joseph E. Stiglitz, 2021. "Artificial Intelligence, Globalization, and Strategies for Economic Development," NBER Working Papers 28453, National Bureau of Economic Research, Inc.
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    5. Alain de Janvry & Elisabeth Sadoulet, 2019. "Transforming developing country agriculture: Removing adoption constraints and promoting inclusive value chain development," Working Papers hal-02287668, HAL.
    6. Popov, Vladimir, 2019. "Successes and failures of industrial policy: Lessons from transition (post-communist) economies of Europe and Asia," MPRA Paper 95332, University Library of Munich, Germany.
    7. Alistair Dieppe, 2021. "Global Productivity," World Bank Publications - Books, The World Bank Group, number 34015.
    8. Elkhan Richard Sadik-Zada, 2021. "Addressing the growth and employment effects of the extractive industries: white and black box illustrations from Kazakhstan," Post-Communist Economies, Taylor & Francis Journals, vol. 33(4), pages 402-434, May.
    9. Blessing Chipanda & Matthew Clance & Steven F. Koch, 2020. "Technological Trade Composition and Performance in African Countries," Working Papers 202057, University of Pretoria, Department of Economics.
    10. Roy van der Weide & Ambar Narayan, 2019. "China and the United States: Different economic models but similarly low levels of socioeconomic mobility," WIDER Working Paper Series wp-2019-121, World Institute for Development Economic Research (UNU-WIDER).
    11. Owusu, Solomon & Szirmai, Adam & Foster-McGregor, Neil, 2020. "The rise of the service sector in the global economy," MERIT Working Papers 2020-056, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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