Premature Deindustrialization

Nisreen Mousa and Abdallah Nassereddine

World Economics, 2025, vol. 26, issue 1, 133-152

Abstract: The article investigates premature deindustrialization in 13 countries in the Middle East and North African region from 2007 to 2019. Premature deindustrialization occurs when countries experience a decline in manufacturing employment/output before reaching advanced income levels, as coined by Rodrick in 2016. The study uses a System Generalized Method of Moments (GMM) analysis and finds that higher population and higher per capita GDP influence industrialization patterns. To prevent premature deindustrialization, MENA region governments need to address institutional weaknesses and structural challenges through appropriate policies.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:wej:wldecn:944

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