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Premature Deindustrialisation in the Developing World

Author

Listed:
  • Dani Rodrik

    (Ford Foundation Professor of International Political Economy, Harvard University, Cambridge, MA 02138, USA; and CEPR Research Fellow)

Abstract

As developed economies have substituted away from manufacturing towards services, so too have developing countries¡ªto an even greater extent. Such sectoral change may be premature for economies that never fully industrialised in the first place. This article presents evidence that countries with smaller manufacturing sectors substitute away from manufacturing to a larger extent, suggesting a trade channel through which falling international relative prices of manufacturing lead price-taking developing economies to substitute accordingly.

Suggested Citation

  • Dani Rodrik, 2017. "Premature Deindustrialisation in the Developing World," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 12(1), pages 1-6, March.
    • Handle: RePEc:fec:journl:v:12:y:2017:i:1:p:1-6
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    File URL: http://journal.hep.com.cn/fec/EN/10.3868/s060-006-017-0001-9
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    Citations

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    Cited by:

    1. Umberto Monarca & Ernesto Cassetta & Michele Lo Re & Linda Meleo, 2019. "A Network Analysis of the Intersectoral Linkages Between Manufacturing and Other Industries in China and Italy," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 11(1-2), pages 80-97, January.
    2. Andersson, Martin & Palacio, Andrés, 2019. "The Revival of Agriculture and Inclusive Growth during the Commodity Boom in Latin America?," Lund Papers in Economic History 208, Lund University, Department of Economic History.
    3. Francesco Macheda & Roberto Nadalini, 2022. "China’s Escape from the Peripheral Condition: A Success Story?," Review of Radical Political Economics, Union for Radical Political Economics, vol. 54(1), pages 59-82, March.
    4. Dweck, Esther & Marcato, Marilia Bassetti & Torracca, Julia & Miguez, Thiago, 2022. "COVID-19 and the Brazilian manufacturing sector: Roads to reindustrialization within societal purposes," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 278-293.
    5. Palacio, Andrés, 2018. "The Social Capability Index and Income Convergence," Lund Papers in Economic History 184, Lund University, Department of Economic History.
    6. Andersson, Martin & Julia, Juan P. & Palcio Ch., Andrés F., 2021. "Resilience to economic shrinking as the key to economic catch-up: A social capability approach," Lund Papers in Economic History 231, Lund University, Department of Economic History.
    7. Dong, Feng & Jia, Yandong & Wang, Siqing, 2022. "Speculative Bubbles and Talent Misallocation," Journal of Economic Dynamics and Control, Elsevier, vol. 141(C).

    More about this item

    Keywords

    deindustrialization; developing countries; trade; globalisaton;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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