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Manufacturing as driver of economic growth

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  • Igor Lopes Rocha

Abstract

This study combines different theoretical strands on development regarding the importance of the manufacturing industry for economic growth. Through a confluence of the Keynesian-Kaldorian, structuralist and neo-Schumpeterian frameworks, the paper argues that the manufacturing industry presents some special properties, which are not found in other sectors. The first section describes Anglo-Saxon structuralism, focused on structural change dynamics, and the Latin American structuralist view of underdevelopment, according to which economic development results from technical progress induced or enabled by capital accumulation. The second section examines the Kaldorian approach to growth, understood as “laws†, where Kaldor explains the differences in international growth rates recovering important elements in the contemporaneous debate. The third section investigates the neo-Schumpeterian route to development, exploring relations between innovation, economic dynamics and catching-up in a sectoral specific approach.

Suggested Citation

  • Igor Lopes Rocha, 2018. "Manufacturing as driver of economic growth," PSL Quarterly Review, Economia civile, vol. 71(285), pages 103-138.
    • Handle: RePEc:psl:pslqrr:2018:21
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    References listed on IDEAS

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    1. Alvaro Angeriz & John McCombie & Mark Roberts, 2009. "Increasing Returns and the Growth of Industries in the EU Regions: Paradoxes and Conundrums," Spatial Economic Analysis, Taylor & Francis Journals, vol. 4(2), pages 127-148.
    2. Prebisch, Raúl, 1950. "The economic development of Latin America and its principal problems," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 29973, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    3. Park, Se-Hark & Chan, Kenneth S., 1989. "A cross-country input-output analysis of intersectoral relationships between manufacturing and services and their employment implications," World Development, Elsevier, vol. 17(2), pages 199-212, February.
    4. Mario Cimoli & Gabriel Porcile & Sebastián Rovira, 2010. "Structural change and the BOP-constraint: why did Latin America fail to converge?," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 34(2), pages 389-411, March.
    5. Ricardo Azevedo Araujo & Gilberto Tadeu Lima, 2007. "A structural economic dynamics approach to balance-of-payments-constrained growth," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 31(5), pages 755-774, September.
    6. J. S. L. McCombie & A. P. Thirlwall, 1994. "Economic Growth and the Balance-of-Payments Constraint," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-23121-8, October.
    7. Giovanni Dosi & Christopher Freeman & Richard Nelson & Gerarld Silverberg & Luc Soete (ed.), 1988. "Technical Change and Economic Theory," LEM Book Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy, number dosietal-1988, November.
    8. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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    Citations

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    Cited by:

    1. Luciano Ferreira Gabriel & Luiz Carlos De Santana Ribeiro & Frederico Gonzaga Jayme Jr. & Jose Luis Oreiro, 2020. "Manufactoring, economic growth, and real exchange rate: Empirical evidence in panel data and input-output multipliers," PSL Quarterly Review, Economia civile, vol. 73(292), pages 51-75.
    2. João Alcobia & Ricardo Cabral, 2023. "The Dutch disease of the Euro Area peripheral member states," Working Papers REM 2023/0257, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    3. Clement Moyo, 2019. "Manufacturing Sector and Economic Growth: A Panel Study of Selected African Countries," GATR Journals jber177, Global Academy of Training and Research (GATR) Enterprise.
    4. Inna Gryshova & Mykola Kyzym & Viktoriia Khaustova & Volodymyr Korneev & Hennadii Kramarev, 2020. "Assessment of the Industrial Structure and its Influence on Sustainable Economic Development and Quality of Life of the Population of Different World Countries," Sustainability, MDPI, vol. 12(5), pages 1-25, March.
    5. Moges Tufa & Mans Söderbom & Zerayehu Sime, 2023. "The Impact of Sector-Specific Industrial Policy on Manufacturing Firm Performance: Quasi-experimental Evidence from Ethiopian Chemical Industries," Journal of Industry, Competition and Trade, Springer, vol. 23(3), pages 363-397, December.

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    More about this item

    Keywords

    Keynesian-Kaldorian; Structuralism; neo-Schumpeterian; development; manufacturing;
    All these keywords.

    JEL classification:

    • B10 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - General
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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