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Industrialization in developing countries: is it related to poverty reduction?

Author

Listed:
  • Abdul A. Erumban
  • Gaaitzen de Vries

Abstract

This paper proposes an empirical framework that relates poverty reduction to production growth. We use the GGDC/UNU-WIDER Economic Transformation Database to measure the contribution to growth of productivity improvements within sectors and structural change—the reallocation of workers across sectors—for 42 developing countries from 1990 to 2018. Next, the contributions are used in a regression analysis, which indicates that poverty reduction is significantly related to structural change and productivity growth in manufacturing.

Suggested Citation

  • Abdul A. Erumban & Gaaitzen de Vries, 2021. "Industrialization in developing countries: is it related to poverty reduction?," WIDER Working Paper Series wp-2021-172, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2021-172
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    References listed on IDEAS

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    8. Hagen Kruse & Emmanuel Mensah & Kunal Sen & Gaaitzen de Vries, 2021. "A manufacturing renaissance? Industrialization trends in the developing world," WIDER Working Paper Series wp-2021-28, World Institute for Development Economic Research (UNU-WIDER).
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    11. Kalwij, Adriaan & Verschoor, Arjan, 2007. "Not by growth alone: The role of the distribution of income in regional diversity in poverty reduction," European Economic Review, Elsevier, vol. 51(4), pages 805-829, May.
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    Cited by:

    1. Dr Sigah, Donny Marclary Ayibazuomuno & Lubo Ebisine, 2024. "Real Sector Development and Poverty Reduction in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(8), pages 1817-1829, August.

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    More about this item

    Keywords

    Poverty; Production; Growth; Manufacturing; Structural change; Developing countries;
    All these keywords.

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