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WP/75 Manufacturing and Economic Development

This paper examines the theoretical and empirical evidence for the hypothesis that manufacturing is the main engine of growth in developing countries. The paper opens with an overview of the main arguments supporting the engine of growth hypothesis and then examines each of these arguments using a mix of statistical analysis of secondary data and secondary literature. The paper concludes that manufacturing will continue to be important in accelerating growth and achieving catch-up in developing countries. However, compared to the past 60 years, market service sectors will become relatively more important as potential sources of growth and catch up.
Publisher:
UNU-WIDER
Series:
WIDER Working Paper
Volume:
2011/75
Title:
WP/75 Manufacturing and Economic Development
Authors:
Adam Szirmai
Publication date:
November 2011
ISBN 13 Print:
978-92-9230-442-3
Copyright holder:
© UNU-WIDER
Copyright year:
2011
Keywords:
structural change, manufacturing, engine of growth, catch-up
JEL:
O14, N6
Project:
Promoting Entrepreneurial Capacity
Sponsor:
UNU-WIDER gratefully acknowledges the financial contributions to the project by the Finnish Ministry for Foreign Affairs, and the financial contributions to the research programme by the governments of Denmark (Ministry of Foreign Affairs), Finland (Finnish Ministry for Foreign Affairs), Sweden (Swedish International Development Cooperation Agency—Sida) and the United Kingdom (Department for International Development).
Format:
online
 
This study has been prepared within a joint project of UNU-MERIT, UNU-WIDER, and UNIDO on Pathways to Industrialization in the 21st Century: New Challenges and Emerging Paradigms.
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