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The Spread of Modern Industry to the Periphery since 1871$
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Kevin Hjortshøj O'Rourke and Jeffrey Gale Williamson

Print publication date: 2017

Print ISBN-13: 9780198753643

Published to Oxford Scholarship Online: March 2017

DOI: 10.1093/acprof:oso/9780198753643.001.0001

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Industrialization in Egypt and Turkey, 1870–2010

Industrialization in Egypt and Turkey, 1870–2010

(p.142) 7 Industrialization in Egypt and Turkey, 1870–2010
The Spread of Modern Industry to the Periphery since 1871

Ulaş Karakoç

Şevket Pamuk

Laura Panza

Oxford University Press

This chapter examines the industrial performance of Egypt and Turkey during four periods: 1870 to the First World War under open economy conditions; the inter-war era when industrialization began with the help of protection; the decades after the Second World War when the import-substituting industrialization model was adopted and rates of industrialization peaked; and trade liberalization since 1980. Per capita incomes were similar in Egypt and Turkey around 1870 but were 150 per cent higher in Turkey than in Egypt in 2010. The chapter identifies several factors which explain this divergence: land abundance in Turkey and its scarcity in Egypt; initial social structure and related political economy forces; government intervention; and the quality of related institutions. In terms of human capital investment, Turkey and Egypt lagged behind countries in Latin America and East Asia, which made it difficult for manufacturing to move towards sectors with higher technology and value added.

Keywords:   Middle East, Egypt, Turkey, manufacturing, factor endowment, education, political economy, economic history, economic growth

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