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Heterogeneous Paths of Industrialization

Federico Huneeus ()

No 2253, Cowles Foundation Discussion Papers from Cowles Foundation for Research in Economics, Yale University

Abstract: Industrialization experiences differ significantly across countries. We use a benchmark model of structural change to shed light on the sources of this heterogeneity and, in particular, the phenomenon of premature deindustrialization. Our analysis leads to three key findings. First, benchmark models of structural change robustly generate hump-shaped patterns for the evolution of the manufacturing sector. Second, heterogeneous patterns of catch-up in sectoral productivities across countries can generate variation in industrialization experiences similar to those found in the data, including premature deindustrialization. Third, differences in the rate of agricultural productivity growth across economies can account for a large share of the variation in peak manufacturing employment shares.

Keywords: Structural transformation; Productivity growth; Industrialization (search for similar items in EconPapers)
JEL-codes: E24 O11 O13 O14 O33 O41 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2020-08
New Economics Papers: this item is included in nep-mac, nep-ore and nep-tid
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Working Paper: Heterogeneous Paths of Industrialization (2020) Downloads
Working Paper: Heterogeneous Paths of Industrialization (2020) Downloads
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