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Input chains and industrialization

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Abstract

A key aspect of industrialization is the adoption of increasing-returns-to-scale, industrial, technologies. Two other, well-documented aspects are that industrial technologies are adopted throughout intermediate-input chains and that they use intermediate inputs intensively relative to the technologies they replace. These features of industrial technologies combined imply that countries with access to similar technologies may have very different levels of industrialization and income, even if the degree of increasing returns to scale at the firm level is relatively small. Furthermore, a small improvement in the productivity of industrial technologies can trigger full-scale industrialization and a large increase in income.

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  • Antonio Ciccone, 2000. "Input chains and industrialization," Economics Working Papers 498, Department of Economics and Business, Universitat Pompeu Fabra.
    • Handle: RePEc:upf:upfgen:498
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    More about this item

    Keywords

    Intermediate inputs; input chains; industrialization; aggregate-income differences;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy

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