Path-dependent productive specialization: Should prematurely deindustrialized countries shift to a KIBS export-led strategy?

Lorenzo Cassini

Structural Change and Economic Dynamics, 2023, vol. 65, issue C, 199-209

Abstract: The transformation of the services sector and the deindustrialization of most economies have increased support for a KIBS export-led growth strategy for premature countries. However, the literature on deindustrialization argues that premature countries develop non-dynamic services mostly, which casts doubt on the viability of that strategy. This article theoretically and empirically analyzes this hypothesis. Using evolutionary and neo-Schumpeterian arguments, we point out the relevance of the path dependency of the productive structure throughout the complex transition from an industrial economy to a service economy. The empirical section analyzes the importance of the previous industrialization of a country to be a successful KIBS exporter. It finds that countries that achieved a high level of industrialization before deindustrializing are more likely to export KIBS than those countries that did not achieve advanced industrialization. Science-based and specialized suppliers manufacturing are of key importance for the development of KIBS capabilities.

Keywords: KIBS exports; Industrialization; Path dependency; Premature deindustrialization; National innovation system (search for similar items in EconPapers)
JEL-codes: L60 L86 O14 O33 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:65:y:2023:i:c:p:199-209

DOI: 10.1016/j.strueco.2023.02.016

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