IDEAS home Printed from https://ideas.repec.org/p/unu/wpaper/wp-2021-172.html
   My bibliography  Save this paper

Industrialization in developing countries: is it related to poverty reduction?

Author

Listed:
  • Abdul A. Erumban
  • Gaaitzen de Vries

Abstract

This paper proposes an empirical framework that relates poverty reduction to production growth. We use the GGDC/UNU-WIDER Economic Transformation Database to measure the contribution to growth of productivity improvements within sectors and structural change—the reallocation of workers across sectors—for 42 developing countries from 1990 to 2018. Next, the contributions are used in a regression analysis, which indicates that poverty reduction is significantly related to structural change and productivity growth in manufacturing.

Suggested Citation

  • Abdul A. Erumban & Gaaitzen de Vries, 2021. "Industrialization in developing countries: is it related to poverty reduction?," WIDER Working Paper Series wp-2021-172, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2021-172
    as

    Download full text from publisher

    File URL: https://www.wider.unu.edu/sites/default/files/Publications/Working-paper/PDF/wp2021-172-industrialization-developing-countries-poverty-reduction.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Margaret S. McMillan & Dani Rodrik, 2011. "Globalization, Structural Change and Productivity Growth," NBER Working Papers 17143, National Bureau of Economic Research, Inc.
    2. Xinshen Diao & Mia Ellis & Margaret S. McMillan & Dani Rodrik, 2021. "Africa's Manufacturing Puzzle: Evidence from Tanzanian and Ethiopian Firms," NBER Working Papers 28344, National Bureau of Economic Research, Inc.
    3. Aziz Atamanov & R. Andres Castaneda Aguilar & Carolina Diaz-Bonilla & Dean Jolliffe & Christoph Lakner & Daniel Gerszon Mahler & Jose Montes & Laura Liliana Moreno Herrera & David Newhouse & Minh C. N, 2019. "September 2019 PovcalNet Update," World Bank Publications - Reports 32478, The World Bank Group.
    4. Shaohua Chen & Martin Ravallion, 2004. "How Have the World's Poorest Fared since the Early 1980s?," The World Bank Research Observer, World Bank Group, vol. 19(2), pages 141-169.
    5. Aziz Atamanov & R. Andres Castaneda Aguilar & Carolina Diaz-Bonilla & Dean M. Jolliffe & Christoph Lakner & Daniel Gerszon Mahler & Jose Montes & Laura Liliana Moreno Herrera & David Locke Newhouse & , 2019. "September 2019 PovcalNet Update: What's New," Global Poverty Monitoring Technical Note Series 10, The World Bank.
    6. Hagen Kruse & Emmanuel Mensah & Kunal Sen & Gaaitzen de Vries, 2021. "A manufacturing renaissance? Industrialization trends in the developing world," WIDER Working Paper Series wp-2021-28, World Institute for Development Economic Research (UNU-WIDER).
    7. L. Alan Winters, 2015. "Trade Liberalisation and Poverty: What are the Links?," World Scientific Book Chapters, in: Non-Tariff Barriers, Regionalism and Poverty Essays in Applied International Trade Analysis, chapter 13, pages 241-269, World Scientific Publishing Co. Pte. Ltd..
    8. L. Alan Winters, 2000. "Trade Liberalisation and Poverty," PRUS Working Papers 07, Poverty Research Unit at Sussex, University of Sussex.
    9. Kalwij, Adriaan & Verschoor, Arjan, 2007. "Not by growth alone: The role of the distribution of income in regional diversity in poverty reduction," European Economic Review, Elsevier, vol. 51(4), pages 805-829, May.
    10. Diao, Xinshen & Ellis, Mia & McMillan, Margaret S. & Rodrik, Dani, 2021. "Africa’s manufacturing puzzle: Evidence from Tanzanian and Ethiopian firms," IFPRI discussion papers 2020, International Food Policy Research Institute (IFPRI).
    11. Grosse, Melanie & Harttgen, Kenneth & Klasen, Stephan, 2008. "Measuring Pro-Poor Growth in Non-Income Dimensions," World Development, Elsevier, vol. 36(6), pages 1021-1047, June.
    12. Mensah, Emmanuel B., 2020. "Is sub-Saharan Africa deindustrializing?," MERIT Working Papers 2020-045, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. B. Essama‐Nssah & Peter J. Lambert, 2009. "Measuring Pro‐Poorness: A Unifying Approach With New Results," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(3), pages 752-778, September.
    2. Panagiotis ARTELARIS & George KANDYLIS, 2014. "Mapping Poverty At Regional Level In Greece," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 39, pages 131-147.
    3. Bluhm R & Crombrugghe D.P.I. de & Szirmai A., 2013. "The pace of poverty reduction - A fractional response approach," MERIT Working Papers 2013-051, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Leone, Fabrizio, 2021. "Foreign Ownership and Robot Adoption," CEPREMAP Working Papers (Docweb) 2111, CEPREMAP.
    5. Liyanaarachchi, Tilak S. & Naranpanawa, Athula & Bandara, Jayatilleke S., 2016. "Impact of trade liberalisation on labour market and poverty in Sri Lanka. An integrated macro-micro modelling approach," Economic Modelling, Elsevier, vol. 59(C), pages 102-115.
    6. Christoph Doerffel & Andreas Freytag, 2021. "The Poverty Effect of Democratization," Jena Economics Research Papers 2021-017, Friedrich-Schiller-University Jena.
    7. Prydz, Espen Beer & Jolliffe, Dean & Serajuddin, Umar, 2021. "Mind the Gap," GLO Discussion Paper Series 944, Global Labor Organization (GLO).
    8. Barbara Coello & Madior Fall & Akiko Suwa-Eisenmann, 2010. "Trade liberalization and poverty dynamics in Vietnam 2002-2006," Working Papers halshs-00564858, HAL.
    9. Calì, Massimiliano & Presidente, Giorgio, 2021. "Robots For Economic Development," GLO Discussion Paper Series 942, Global Labor Organization (GLO).
    10. Korinek, Anton & Stiglitz, Joseph E, 2021. "Artificial Intelligence, Globalization, and Strategies for Economic Development," CEPR Discussion Papers 15772, C.E.P.R. Discussion Papers.
    11. John Gilbert, 2008. "BIMSTEC-Japan Trade Cooperation and Poverty in Asia," Working Papers 2008-03, Utah State University, Department of Economics, revised 19 Dec 2008.
    12. Bluhm, Richard & de Crombrugghe, Denis & Szirmai, Adam, 2018. "Poverty accounting," European Economic Review, Elsevier, vol. 104(C), pages 237-255.
    13. Emma Aisbett, 2007. "Why are the Critics So Convinced that Globalization is Bad for the Poor?," NBER Chapters, in: Globalization and Poverty, pages 33-86, National Bureau of Economic Research, Inc.
    14. Nicoletta Berardi & Federica Marzo, 2017. "The Elasticity of Poverty with respect to Sectoral Growth in Africa," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63(1), pages 147-168, March.
    15. Gilbert, John & Banik, Nilanjan, 2010. "Socioeconomic Impacts of Cross-Border Transport Infrastructure Development in South Asia," ADBI Working Papers 211, Asian Development Bank Institute.
    16. Jörg Mayer, 2021. "Development strategies for middle‐income countries in a digital world—Insights from modern trade economics," The World Economy, Wiley Blackwell, vol. 44(9), pages 2515-2546, September.
    17. L. Alan Winters & Antonio Martuscelli, 2014. "Trade Liberalization and Poverty: What Have We Learned in a Decade?," Annual Review of Resource Economics, Annual Reviews, vol. 6(1), pages 493-512, October.
    18. John Gilbert, 2008. "Agricultural Trade Reform and Poverty in the Asia-Pacific: A Survey and Some New Results," Working Papers 200801, Utah State University, Department of Economics and Finance.
    19. Céline Zipfel, 2022. "The demand side of Africa's demographic transition: desired fertility, wealth, and jobs," STICERD - Economic Organisation and Public Policy Discussion Papers Series 71, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    20. Çakır, Muhammet Sait & Aydemir, Resul, 2022. "A Dutch disease approach into the premature deindustrialization," Economic Systems, Elsevier, vol. 46(4).

    More about this item

    Keywords

    Poverty; Production; Growth; Manufacturing; Structural change; Developing countries;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:unu:wpaper:wp-2021-172. 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: . General contact details of provider: https://edirc.repec.org/data/widerfi.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Siméon Rapin (email available below). General contact details of provider: https://edirc.repec.org/data/widerfi.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.