IDEAS home Printed from https://ideas.repec.org/a/eee/asieco/v52y2017icp1-11.html
   My bibliography  Save this article

The development of manufacturing: Unintended consequence

Author

Listed:
  • Grabowski, Richard
  • Self, Sharmistha

Abstract

Structural change has taken divergent paths in India and Bangladesh. Using a dual economy perspective it is hypothesized that structural change is related to the intersectoral terms of trade. That is, the share of manufacturing in the economy falls as the price of agricultural goods rises relative to that for manufacturing and vice versa. This hypothesis is tested using data from the two countries and is found to be valid. Further, the differing movement in the intersectoral terms of trade in the two countries is found to be related to the type of policy followed (especially with respect to agriculture).

Suggested Citation

  • Grabowski, Richard & Self, Sharmistha, 2017. "The development of manufacturing: Unintended consequence," Journal of Asian Economics, Elsevier, vol. 52(C), pages 1-11.
    • Handle: RePEc:eee:asieco:v:52:y:2017:i:c:p:1-11
    DOI: 10.1016/j.asieco.2017.07.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1049007817300465
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.asieco.2017.07.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kym Anderson, 2009. "Distorted Agricultural Incentives and Economic Development: Asia's Experience," The World Economy, Wiley Blackwell, vol. 32(3), pages 351-384, March.
    2. Gollin, Douglas & Parente, Stephen L. & Rogerson, Richard, 2007. "The food problem and the evolution of international income levels," Journal of Monetary Economics, Elsevier, vol. 54(4), pages 1230-1255, May.
    3. Kochhar, Kalpana & Kumar, Utsav & Rajan, Raghuram & Subramanian, Arvind & Tokatlidis, Ioannis, 2006. "India's pattern of development: What happened, what follows?," Journal of Monetary Economics, Elsevier, vol. 53(5), pages 981-1019, July.
    4. McMillan, Margaret & Rodrik, Dani & Verduzco-Gallo, Íñigo, 2014. "Globalization, Structural Change, and Productivity Growth, with an Update on Africa," World Development, Elsevier, vol. 63(C), pages 11-32.
    5. Gupta,Poonam & Hasan, Rana & Kumar, Utsav, 2009. "Big Reforms but Small Payoffs: Explaining the Weak Record of Growth in Indian Manufacturing," India Policy Forum, National Council of Applied Economic Research, vol. 5(1), pages 59-123.
    6. Dani Rodrik, 2016. "Premature deindustrialization," Journal of Economic Growth, Springer, vol. 21(1), pages 1-33, March.
    7. Gaaitzen de Vries & Marcel Timmer & Klaas de Vries, 2015. "Structural Transformation in Africa: Static Gains, Dynamic Losses," Journal of Development Studies, Taylor & Francis Journals, vol. 51(6), pages 674-688, June.
    8. Amrit Amirapu & Arvind Subramanian, 2015. "Manufacturing or Services? An Indian Illustration of a Development Dilemma," Working Papers id:7521, eSocialSciences.
    9. Felipe, Jesus & Mehta, Aashish & Rhee, Changyong, 2014. "Manufacturing Matters...but It’s the Jobs That Count," ADB Economics Working Paper Series 420, Asian Development Bank.
    10. Asadullah, M. Niaz & Savoia, Antonio & Mahmud, Wahiduddin, 2014. "Paths to Development: Is there a Bangladesh Surprise?," World Development, Elsevier, vol. 62(C), pages 138-154.
    11. Amrit Amirapu and Arvind Subramanian, 2015. "Manufacturing or Services? An Indian Illustration of a Development Dilemma - Working Paper 409," Working Papers 409, Center for Global Development.
    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. Ajit K. Ghose, 2021. "Structural Change and Development in India," Indian Journal of Human Development, , vol. 15(1), pages 7-29, April.
    2. Dani Rodrik, 2016. "Premature deindustrialization," Journal of Economic Growth, Springer, vol. 21(1), pages 1-33, March.
    3. Sher Singh Verick, 2017. "The puzzles and contradictions of the Indian labour market: What will the future of work look like?," ASARC Working Papers 2017-02, The Australian National University, Australia South Asia Research Centre.
    4. Stefan Pahl & Marcel P. Timmer, 2020. "Do Global Value Chains Enhance Economic Upgrading? A Long View," Journal of Development Studies, Taylor & Francis Journals, vol. 56(9), pages 1683-1705, July.
    5. Martin Labaj & Stracova Erika, 2019. "Drivers of Deindustrialisation: Sub-system Analysis of Internationally Fragmented Production Structures," Department of Economic Policy Working Paper Series 018, Department of Economic Policy, Faculty of National Economy, University of Economics in Bratislava.
    6. Matthieu Charpe, 2023. "Convergence heterogeneity at the local level in sub‐Saharan Africa," Papers in Regional Science, Wiley Blackwell, vol. 102(2), pages 273-305, April.
    7. Matthias Busse & Ceren Erdogan & Henning Mühlen, 2019. "Structural transformation and its relevance for economic growth in Sub‐Saharan Africa," Review of Development Economics, Wiley Blackwell, vol. 23(1), pages 33-53, February.
    8. Choithani, Chetan & van Duijne, Robbin Jan & Nijman, Jan, 2021. "Changing livelihoods at India’s rural–urban transition," World Development, Elsevier, vol. 146(C).
    9. Ghulam Yahya Khan & Salik Mehboob & Lydia Bares Lopez, 2018. "Deindustrialization and Economic Growth: Empirical Evidence from Pakistan," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 6(4), pages 462-475, December.
    10. Rekha Ravindran & Suresh Babu Manalaya, 2023. "Does Premature Deindustrialisation Stall Growth? Evidence from Sub-Saharan Africa," Progress in Development Studies, , vol. 23(1), pages 65-81, January.
    11. Suale Karimu, 2019. "Structural transformation, openness, and productivity growth in sub-Saharan Africa," WIDER Working Paper Series wp-2019-109, World Institute for Development Economic Research (UNU-WIDER).
    12. Mensah, Emmanuel B. & Owusu, Solomon & Foster-McGregor, Neil, 2023. "Productive efficiency, structural change, and catch-up within Africa," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 78-100.
    13. Kappel, Robert, 2017. "New Horizons for Germany's Africa Policy," GIGA Working Papers 303, GIGA German Institute of Global and Area Studies.
    14. Mensah, Emmanuel & Owusu, Solomon & Foster-McGregor, Neil & Szirmai, Adam, 2018. "Structural change, productivity growth and labour market turbulence in Africa," MERIT Working Papers 2018-025, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    15. Alessandro Nuvolari & Emanuele Russo, 2019. "Technical progress and structural change: a long-term view," LEM Papers Series 2019/17, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    16. 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).
    17. Abhijit Sen Gupta & Vishal More & Kanupriya Gupta, 2018. "Why Generating Productive Jobs is Essential for Reducing Poverty in India: Evidence from Indian Regions," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 61(4), pages 563-587, December.
    18. Avdiu,Besart & Bagavathinathan,Karan Singh & Chaurey,Ritam & Nayyar,Gaurav, 2022. "India's Services Sector Growth : The Impact of Services Trade on Non-tradable Services," Policy Research Working Paper Series 10094, The World Bank.
    19. Gaurav Gupta & Amit Basole, 2020. "India’s Information Technology industry: prospects for growth and role in structural transformation," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 47(4), pages 341-361, December.
    20. K J Joseph & Kiran Kumar Kakarlapudi & Akhil Joseph, 2020. "Deindustrialization and innovation under globalization: An analysis of India’s catch up in manufacturing [Desindustrialização e inovação na globalização: uma análise do catch up indiano na manufatura]," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 30(spe), pages 1199-1224, December.

    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:eee:asieco:v:52:y:2017:i:c:p:1-11. See general information about how to correct material in RePEc.

    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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/asieco .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.