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Patterns of Technical Change and De-Industrialization

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  • Xiao Jiang
  • Luis Villanueva

Abstract

Using a classical political economy approach we find aggregate regularities in the patterns of technical change followed by high income and developing countries (mostly from Latin America and Sub Saharan Africa) respectively. Such regularities allow us to propose an alternative definition of de-industrialization and study the issue of “premature de-industrialization†from a political economy perspective. In the (capital productivity, labor productivity) plane, a characteristic trajectory of high-income countries typically fluctuates in the quadrant where labor productivity growth rates are positive while capital productivity growth rates are negative (the industrialization quadrant). De-industrializing countries, on the other hand, have transitioned from the quadrant with positive labor productivity growth rates and negative capital productivity growth rates to the opposite quadrant (with negative labor productivity and positive capital productivity growth) and remained in this quadrant during the 1980s and 1990s. Both groups of countries, high income and de-industrializing seem to follow a cyclical pattern, revealing that the rate of industrialization is constantly fluctuating with varying labor and capital productivity growth rates

Suggested Citation

  • Xiao Jiang & Luis Villanueva, 2018. "Patterns of Technical Change and De-Industrialization," PSL Quarterly Review, Economia civile, vol. 71(285), pages 161-182.
  • Handle: RePEc:psl:pslqrr:2018:23
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    File URL: https://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/14001/pdf
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    References listed on IDEAS

    as
    1. 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.
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    3. Giovanni Andrea Cornia, 2012. "Inequality Trends and their Determinants: Latin America over 1990-2010," WIDER Working Paper Series wp-2012-009, World Institute for Development Economic Research (UNU-WIDER).
    4. repec:unu:wpaper:wp2012-09 is not listed on IDEAS
    5. Jos� Antonio Ocampo & Juliana Vallejo, 2012. "Economic Growth, Equity and Human Development in Latin America," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 13(1), pages 107-133, February.
    6. Rodrik, Dani, 2012. "The Globalization Paradox: Why Global Markets, States, and Democracy Can't Coexist," OUP Catalogue, Oxford University Press, number 9780199652525.
    7. Bertola, Luis & Ocampo, Jose Antonio, 2012. "The Economic Development of Latin America since Independence," OUP Catalogue, Oxford University Press, number 9780199662142.
    8. Giovanni Andrea Cornia, 2012. "Inequality Trends and their Determinants: Latin America over 1990-2010," Working Papers - Economics wp2012_02.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
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    Cited by:

    1. Adalmir Marquetti & Luiz Eduardo Ourique & Henrique Morrone, 2020. "A Classical-Marxian Growth Model of Catching Up and the Cases of China, Japan, and India: 1980–2014," Review of Radical Political Economics, Union for Radical Political Economics, vol. 52(2), pages 312-334, June.
    2. Botchie, David & Sarpong, David & Meissner, Dirk, 2022. "Chain upgrading, technology transfer, and legitimacy: The Schumpeterian character of China in the information and communication technology sector in SSA," Technological Forecasting and Social Change, Elsevier, vol. 183(C).

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    More about this item

    Keywords

    patterns of technical change; de-industrialization; Classical Political Economy; labor productivity; capital productivity;
    All these keywords.

    JEL classification:

    • B12 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Classical (includes Adam Smith)
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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