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Pathways to Industrialization in the Twenty-First CenturyNew Challenges and Emerging Paradigms$
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Adam Szirmai, Wim Naudé, and Ludovico Alcorta

Print publication date: 2013

Print ISBN-13: 9780199667857

Published to Oxford Scholarship Online: May 2013

DOI: 10.1093/acprof:oso/9780199667857.001.0001

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Emerging Patterns of Structural Change in Manufacturing

Emerging Patterns of Structural Change in Manufacturing

Chapter:
(p.102) 4 Emerging Patterns of Structural Change in Manufacturing
Source:
Pathways to Industrialization in the Twenty-First Century
Author(s):

Nobuya Haraguchi

Gorazd Rezonja

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199667857.003.0004

What did it take for rich countries to become economically more developed than others? One explanation can be found in the strand of growth literature linking the level of economic development with industrialization, which contends that changes in the structure of production (structural change) are accompanied by economic growth. Studies on changes in the structure of production gained attention over half a century ago which linked manufacturing development with rising per capita income. A country’s optimal industrial structure will differ according to its stage of development and its given characteristics. Countries at different development stages have comparative advantages in different industries. Identifying latent comparative advantages and understanding their evolutions helps countries pursue welfare-enhancing industrial structural change, something many developing countries have been struggling to achieve. This chapter will demonstrate the likely evolution of industrial structure in countries with different characteristics.

Keywords:   economic development, economic growth, manufacturing, comparative advantage, structural change, developing countries

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