What factors drive successful industrialization? Evidence and implications for developing countries

Haraguchi, Nobuya; Martorano, Bruno; Sanfilippo, Marco

doi:10.1016/j.strueco.2018.11.002

Cited by 114 publications

(84 citation statements)

References 33 publications

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“…3 This is consistent with existing literature (see, e.g., Hausmann et al, 2005;Haraguchi et al, 2018). 4 A potential issue is that MVA growth accelerations could be overlapping with GDP growth episodes, making our analysis hardly distinguishable from that by Hausman et al (2005).…”

Section: Bruno Martoranosupporting

confidence: 88%

“…As emphasized in the work by Gelb, Meyer, Ramachandran, and Wadhwa (2017, p. 1): "… the 'footloose' industries that have typically served as the entry point for industrialization generally involve labor-intensive segments of industrial value chains," which are normally found in poor countries mostly endowed with cheap labor. Using a constructed proxy for average wage level based on the work of Haraguchi et al (2018) 10 , we confirm that low labor costs constitute an important factor in determining episodes of manufacturing growth acceleration. The coefficient is particularly strong (and significant) for LMI, a group in fact including some of the manufacturing powerhouses in GVCs.…”

Section: Further Sensitivity Analysismentioning

confidence: 70%

“…So, while there is evidence on the likely consequences of industrialization on growth and structural transformation, and on the way the importance of manufacturing has changed over time both within and across countries (Diao, McMillan, & Rodrik, 2017;Haraguchi, Cheng, & Smeets, 2017), little is still known on how industrialization actually happens. Some literature has dealt with the factors driving (or hampering) industrialization (Newman et al, 2016;Haraguchi, Martorano, & Sanfilippo, 2018), though mostly using a descriptive, or a case-study based approach. 1 Relative to existing work, our analysis adds value by looking at what drives the upsurge of industrialization episodes, in turn providing evidence with potentially useful and important policy implications, especially for developing countries still at early stages of structural transformation.…”

Section: Introductionmentioning

confidence: 99%

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Manufacturing growth accelerations in developing countries

Haraguchi

Martorano

Sanfilippo

et al. 2019

Review Development Economics

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This paper investigates the factors driving manufacturing growth accelerations in a sample of 134 developing countries over the period 1970 to 2014. We first identify growth acceleration episodes of manufacturing value added (MVA) by their year of initiation and according to a country’s income classification. We then estimate a probit model to explain what factors predict these MVA growth accelerations. Our results show that human capital and institutions represent contextual factors that favor the growth of manufacturing, together with macroeconomic policies related to investment, and openness to foreign trade and capital. We also find that most of these factors not only foster episodic accelerations of industry, but they contribute as well to a sustained process of industrialization that characterized the process of economic growth of a few successful countries over the period 1970 to 2014.

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Section: Bruno Martoranosupporting

confidence: 88%

Section: Further Sensitivity Analysismentioning

confidence: 70%

Section: Introductionmentioning

confidence: 99%

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Manufacturing growth accelerations in developing countries

Haraguchi

Martorano

Sanfilippo

et al. 2019

Review Development Economics

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“…Thus, the period from 2001 to 2010 highly influenced the rise in CO 2 emissions, and efforts on carbon emission mitigation were mostly ineffective. This is the case with most developing countries as they prioritize economic growth over environmental quality especially during the initial stages of industrialization (Sadorsky 2013;Haraguchi et al 2019). From 2011 to 2016, energy intensity and fuel mix effect also improved to a certain degree-resulting in slowing down the rising CO 2 emissions.…”

Section: The Critical Drivers Of Co 2 Emissions In Vietnammentioning

confidence: 99%

Decarbonization of Vietnam’s economy: decomposing the drivers for a low-carbon growth

Huong

Shah

Park

2020

Environ Sci Pollut Res

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Vietnam has witnessed a rapid increase in national-level CO 2 emissions due to rising urbanization, economic expansion, export growth, and industrial development. Moreover, to support the ambitious economic growth targets, reliance on and consumption of fossil fuels are increasing by each passing year. With this circumstance, this study aims to analyze the key drivers of CO 2 emissions in Vietnam from 1990 to 2016 using the Kaya identity and decomposition method. Following this approach, CO 2 emissions have been decomposed into five effect categories comprising population, affluence, energy intensity, fuel mix, and emission intensity. As per the results, CO 2 emissions in Vietnam were mainly driven by rising affluence (58.5%) and changing fuel mix (33.2%) which have resulted from improved living standards, rapid industrial development, and higher fossil fuel consumption. Moreover, population (13.8%) and emission intensity (3.1%) exhibited a relatively lower impact on CO 2 emissions during 1990-2016. However, energy intensity (− 8.7%) was the only negative driver which has resulted in the slowdown of carbon emissions in Vietnam. Based on the analysis of energy policy development, the share of renewable energy resources was still quite low in the national energy mix with higher reliance on traditional fossil fuels (mainly coal and petroleum). Therefore, to make a transition towards low-carbon economic growth, significant improvements in energy efficiency and emission intensity are necessary together with national energy mix restructuring for low-carbon economic growth.

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“…Successful industrialization in developing countries is due not only to the presence of institutions, but also to their ability to combine the initial economic conditions of the country to promote macroeconomic and institutional stability [4]. This ability is realized through financial, fiscal, sector and trade reforms, which complement each other to increase the productivity of firms [5] and reduce wage inequality in the framework of the General equilibrium approach [6], when the utility functions for the period are either additive or satisfy the replacement condition.…”

Section: Literature Reviewmentioning

confidence: 99%

Analysis of Areas of Financial and Economic Cooperation Between China and Russia

Смирнов¹,

Semenov²,

Zakharova³

et al. 2020

Proceedings of the “New Silk Road: Business Cooperation and Prospective of Economic Development” (NSRBCPED 2019)

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The article reveals the relevance of the problem of studying the possible areas of financial and economic cooperation of such large countries as China and Russia, as well as the role of developed and developing countries, in the face of a decline in world trade growth and increased global competition. The study uses statistical, cluster and factor analysis of economic growth and financial solvency of China and Russia based on an assessment of the dynamics of the main indicators. As a result of the analysis of the dynamics of economic growth, the following areas of cooperation between China and Russia are identified: "GDP per capital, PPP (current international $)" and" Gross capital formation (current US$)", due to the increase in hydrocarbon exports and equipment purchases. The results of the analysis of the proximity matrix of indicators of financial solvency of China and Russia revealed the following priorities: China-"Inflation, GDP deflator (annual %)" and "Gross capital formation (% of GDP)"; Russia-"Broad money growth (annual %)" and "Inflation, GDP deflator (annual). The General direction of international cooperation between China and Russia to ensure financial solvency is "Inflation, GDP deflator (annual %)".

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What factors drive successful industrialization? Evidence and implications for developing countries

Cited by 114 publications

References 33 publications

Manufacturing growth accelerations in developing countries

Manufacturing growth accelerations in developing countries

Decarbonization of Vietnam’s economy: decomposing the drivers for a low-carbon growth

Analysis of Areas of Financial and Economic Cooperation Between China and Russia

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