Premature Deindustrialisation in the Developing World

Dani Rodrik

Frontiers of Economics in China-Selected Publications from Chinese Universities, 2017, vol. 12, issue 1, 1-6

Abstract: As developed economies have substituted away from manufacturing towards services, so too have developing countries¡ªto an even greater extent. Such sectoral change may be premature for economies that never fully industrialised in the first place. This article presents evidence that countries with smaller manufacturing sectors substitute away from manufacturing to a larger extent, suggesting a trade channel through which falling international relative prices of manufacturing lead price-taking developing economies to substitute accordingly.

Keywords: deindustrialization; developing countries; trade; globalisaton (search for similar items in EconPapers)
JEL-codes: O14 O19 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (7)

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