Industrialisation as an engine of growth in developing countries

Szirmai, Adam (2009). Industrialisation as an engine of growth in developing countries. UNU-MERIT.

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  • Author Szirmai, Adam
    Title Industrialisation as an engine of growth in developing countries
    Publication Date 2009
    Publisher 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.
    Keyword Structural change
    Manufacturing
    Engine of growth
    Catch up
    JEL O14
    N6
    Copyright Holder UNU-MERIT
    Copyright Year 2009
    ISSN 1871-9872
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    Created: Wed, 11 Dec 2013, 16:35:12 JST