TY - JOUR
T1 - What factors drive successful industrialization?
T2 - Evidence and implications for developing countries
AU - Haraguchi, N.
AU - Martorano, B.
AU - Sanfilippo, M.
N1 - Funding Information:
We are grateful to two anonymous referees and to participants to the C.MET5 Workshop in Ferrara, for useful comments. We acknowledge financial support by the Government of Japan through the Development Cooperation Trust Fund . The views expressed here are those of the authors and do not reflect the views of the United Nations Industrial Development Organization.
Funding Information:
We are grateful to two anonymous referees and to participants to the C.MET5 Workshop in Ferrara, for useful comments. We acknowledge financial support by the Government of Japan through the Development Cooperation Trust Fund. The views expressed here are those of the authors and do not reflect the views of the United Nations Industrial Development Organization.
Publisher Copyright:
© 2018 Elsevier B.V.
PY - 2019/6
Y1 - 2019/6
N2 - This paper analyses the drivers of successful industrialization in developing countries. We consider two different periods, 1970-1990 and 1991-2014, likely to be affected by different patterns of industrialization due to major political, technological and organizational changes. We subsequently develop a methodology to identify a small group of countries for each period, which have exhibited a pattern of industrialization that is not only remarkable in absolute terms, but also sustained. Our analysis reveals that successful industrialization is driven by a combination of factors, including a country's initial economic conditions, factor endowments and other characteristics, such as demography and geography. We also show that other variables that policymakers can control play a crucial role. This includes, among others, the promotion of investments (both public and privately funded) and education; the management of trade and capital openness; financial sector development and the promotion of both macroeconomic and institutional stability.
AB - This paper analyses the drivers of successful industrialization in developing countries. We consider two different periods, 1970-1990 and 1991-2014, likely to be affected by different patterns of industrialization due to major political, technological and organizational changes. We subsequently develop a methodology to identify a small group of countries for each period, which have exhibited a pattern of industrialization that is not only remarkable in absolute terms, but also sustained. Our analysis reveals that successful industrialization is driven by a combination of factors, including a country's initial economic conditions, factor endowments and other characteristics, such as demography and geography. We also show that other variables that policymakers can control play a crucial role. This includes, among others, the promotion of investments (both public and privately funded) and education; the management of trade and capital openness; financial sector development and the promotion of both macroeconomic and institutional stability.
KW - Developing countries
KW - Industrialization
KW - Policies
KW - STRUCTURAL-CHANGE
KW - PATTERNS
KW - ECONOMIC-GROWTH
KW - industrialization
KW - DEPENDENCE
U2 - 10.1016/j.strueco.2018.11.002
DO - 10.1016/j.strueco.2018.11.002
M3 - Article
SN - 0954-349X
VL - 49
SP - 266
EP - 276
JO - Structural Change and Economic Dynamics
JF - Structural Change and Economic Dynamics
ER -