Industrialization is the process
of developing an economy founded on the mass manufacturing of goods.
Industrialization is associated
with the urbanization of society, an extensive division of labour, a wage economy,
differentiation of institutions, and growth of mass communication and mass markets.
Many western developed and
industrialized societies are now described as post-industrial since much economic activity
is based on the production of services, knowledge or symbols.
Industrialization: A Critique of Lewis
M. Shahid Alam, Department of Economics, Northeastern University, Boston, Review of
Radical Political Economics, Vol. 36, No. 2, 217-240 (2004) © Union for Radical Political
This article critiques W. Arthur Lewiss economic explanation of the division of the
world into industrial and agricultural countries. His claim that industrialization in the
tropics was held back by small markets and adverse factoral terms of trade is flawed and
lacks empirical support.
His rejection of the imperialist
origins of poverty is poorly argued, and his claim that colonial policies did not differ
from policies of sovereign countries is not supported even by his own evidence. He also
ignores the strong correlation between loss of sovereignty and poor growth performance.
Poverty Alleviation: Pro-Poor Industrialization Strategies Revisited
Download the Full Report: unido.org/file-storage/download?file%5fid=59561
Abstract The report comprises three chapters. Chapter I provides an overview of the facts
and focuses on discussions related to poverty reduction and industrialization. The two
most promising industrialization strategies for poverty reduction, namely, agro-based
industrialization and labour-intensive industrialization, are described and justified.
Chapter II focuses on labour-intensive industrialization strategy. First, the mechanisms
of this type of industrialization, which facilitates poverty reduction, are described in
detail. Secondly, based on field surveys conducted in Bangladesh and Kenya, a case study
of a typical labour-intensive industry is presented. Thirdly, prospects for further
poverty reduction through the development of labour-intensive industries are evaluated.
Finally, policy recommendations are presented in chapter III.
Perspectives on Industrialization: Global Industrial Partnerships
Download the Full Report: unido.org/userfiles/PuffK/IDWG542_1.pdf
Abstract This document represents the executive summary and main paper for the 1995 Global
Forum on Industry. It provides a summary of the entire documentation prepared for the
Forum, and gives a coherent long-term view of the prospects for industrial development.
The study predicts that industrialization will remain the mainspring of the economic
growth of developing countries and the catalyst of their technological, financial and
socio-economic transformation. In drawing this conclusion, the study analyzes the changing
patterns of industrialization in response to technological progress, intensified
competition and globalization, which is presented as a
win-win formula rather than a zero-sum game.
Market-oriented policies emphasizing trade liberalization, deregulation and privatization
will prevail over import-substitution industrialization, but enhanced export growth will
be determined by the development of national technological capabilities in the markets and
upgrading and improved competitiveness of national manufacturing industry. Small and
medium-sized firms will play an increasing role in industrial development, exporting and
job creation. Measures to achieve environmentally sustainable economic growth will become
increasingly urgent. Rural industrialization will be used for job creation, increasing
gender equality and social integration. - unido.org/en/doc/3486
On the Effects of
Industrialization Processes on Growth and Convergence Dynamics: Evidence from Italian
Regions - Leone Leonida - Abstract: This paper studies the effects of
industrialization on growth and convergence dynamics in Italy. We propose a
semi-parametric procedure linking growth theory with density-type studies on convergence.
Our analysis suggests that absolute convergence processes do not necessarily exclude
dynamics of club convergence and vice-versa. Growth and convergence processes should be
thought as the composition of contrasting economic influences, in which industrialization
matters. Our results suggest that the convergence process between the South and the North
of Italy ended due to a slowing down both in the industrialization process in Southern
regions and in the steady state convergence process of all regional economies.
Inequality and Industrialization - Parantap Basu, Alessandra Guariglia
Abstract: Why do some countries industrialize later than others? Recent literature
suggests that the prime reason is low agricultural productivity. This paper argues that
the initial inequality of human capital could also be a contributing factor to the delayed
process of industrialization characterizing some countries. We develop a neo-classical
growth model which predicts that countries with a greater initial knowledge gap between
rich and poor agents industrialize slowly, and that human capital inequality, although
declining, tends to be persistent. Our cross-country data lend support to these
predictions. - ideas.repec.org/p/san/cdmacp/0401.html
"Industrialization, Economic Growth and International Trade"
Kar-yiu Wong, University of Washington and Chinese University of Hong Kong
Chong-Kee Yip, Chinese University of Hong Kong
Conference on "Dynamics, Economic Growth, and International Trade," July 1997,
Abstract: This paper analyzes the relationship between industrialization, economic growth
and international trade for an economy with two sectors. With learning by doing, the
manufacturing sector grows over time, but no learning by doing is experienced in the
agricultural sector. Along a balanced growth path (BGP), the economy grows perpetually as
the manufacturing sector grows. This model is very much different from those considered in
the literature as along a BGP the two sectors do not grow at the same rate and therefore
the relative price does not remain stationary. The economy is then opened up to trade.
Different patterns of trade and production are examined, and in each of these cases the
effects of trade on industrialization and growth are derived. -
"Dynamic Gains from Trade and Industrialization"
Kar-yiu Wong, University of Washington and Chong K. Yip, Chinese University of Hong Kong
Conference on "Dynamics, Economic Growth, and International Trade, III" August
24-26, 1998, Academia Sinica, Taiwan.
In this paper, we consider a two-sector, dynamic economy in which one of the sectors are
growing through learning by doing while the other one is stationary along an autarkic
balanced growth path. The resulting declining relative price thus implies that
accelearated industrialization through production subsidy could improve the lifetime
welfare of this closed economy.
This model is used to study the effects of trade between two economies with similar
structures. It is shown that trade and the pattern of production depends not only on the
characteristics of the economies such as technologies, preferences, knowledge accumulation
rates, and labor force endowments, but also on the timing of trade. There are some cases
in which the pattern of trade changes and some cases in which the economy exports the
"wrong" good in the sense that the actual pattern of trade is not the same as
what it would be should no trade be allowed in the first place.
It is shown that whether free trade is beneficial to a small open economy in the long run
depends on what good is being produced and exported, and also on when free trade is first
allowed. Thus free trade may be be good. This paper also derives the optimal timing of
trade and the optimal production subsidy in the presence of trade. -
Alternative Perspectives on Late Industrialization in East Asia: A Critical Survey
Paul Burkett, Martin Hart-Landsberg, Department of Economics, Indiana State University,
Terre Haute IN 47809; Department of Economics, Lewis and Clark College, Portland
Review of Radical Political Economics, Vol. 32, No. 2, 222-264 (2000)
This paper evaluates the five most popular analytical approaches to the East Asian
"miracle" economies: neoliberal, structural-institutional, "flying
geese," Greater China, and dependency perspectives. Distinguishing between national
and regional development visions, we specify the key forces that each approach sees
driving industrialization and growth, as well as the most likely barriers each sees to
continued growth and development in East Asia. In pointing out the main analytical
shortcomings of the five perspectives in light of the East Asian crisis, we sketch some
key elements of a Marxist framework capable of overcoming these difficulties in a
politically useful way.
Simon Szreter, St Johns College, Cambridge, UK - British Medical Bulletin 69:75-86
Correspondence to: Simon Szreter, Reader in History and Public Policy, University of
Cambridge and Fellow, St Johns College, Cambridge, St Johns College, Cambridge
Throughout history and prehistory trade and economic growth have always entailed serious
population health challenges. The post-war orthodoxies of demographic and epidemiological
transition theory and the Washington consensus have each encouraged the view that
industrialization necessarily changes all this and that modern forms of rapid economic
growth will reliably deliver enhanced population health. A more careful review of the
historical demographic and anthropometric evidence demonstrates that this is empirically
false, and a fallacious oversimplification. All documented developed nations endured the
four Ds of disruption, deprivation, disease and death during their historic
industrializations. The well-documented British historical case is reviewed in detail to
examine the principal factors involved. This shows that political and ideological
divisions and conflictand their subsequent resolution in favour of the health
interests of the working-class majoritieswere key factors in determining whether
industrialization exerted a positive or negative net effect on population health. -
Meiji-era industrialization and provincial vitality: the significance of the
first-enterprise boom of the 1880s
N Nakamura, Faculty of Economics, Saitama University, 225 Shimo-Okubo, Urawa-shi 338-8570
Social Science Japan Journal 3:187-205 (2000) © 2000 Oxford University Press
The purpose of this paper is to shed new light on the first enterprise boom of the 1880s,
which marked the beginning of Japan's industrialization, with a special focus on
developments in provincial areas. The paper seeks to identify important factors that
triggered the boom and to examine its development in provincial areas by probing such
aspects as the relationship between nationalism and the ideological thrust toward economic
development, the process by which investment funds were procured, and the endowment and
tapping of human resources. Major findings are as follows: (1) The ideology of national
enrichment was influential not only in Japan's geopolitical center but also in the
provinces, where it manifested itself as a combination of nationalist sentiment and
aspirations for local development. (2) The most salient feature of provincial enterprise
was the strong impetus of local initiative in the procurement of funding and human
resources. Local bureaucrats and men of influence often took leading roles. (3) The
successful launching of enterprises in provincial areas was facilitated by two factors:
the provinces had already grown socially competent to pursue industrialization; and the
development of rural industry since the Tokugawa period had made them fairly affluent.
Building technological capability for industrialization: analytical frameworks and
L Kim, College of Business Administration, Korea University, Seoul, Korea 136-701.
Industrial and Corporate Change, Volume 8, Number 1, pp. 111-136 © 1999 Oxford Univ.
Abstract: This paper first presents five analytical frameworks-technology trajectory,
absorptive capacity, technology transfer, crisis construction and dynamic learning
process-that may be used to examine the process of technological learning at the firm
level. These frameworks are interrelated to develop an integrative model. The Korean
experience is then discussed as a case in point to illustrate how the frameworks can be
used to analyze the process of building technological capability for industrialization.
The paper also discusses many implications for public policy and corporate management in
Dependent Industrialization in the World Economy
Some Comments and Results Concerning a Recent Debate - Volker Bornschier,
Sociological Institute University of Zurich
Journal of Conflict Resolution, Vol. 25, No. 3, 371-400 (1981)
Abstract: Recent cross-national studies that analyze the impact of multinational
corporations in the world economy on economic growth and inequality in peripheral and core
countries have been interpreted as empirical tests of "dependencia" theories.
Such a limited interpretation does not fully acknowledge the theoretical approach of some
researchers who contributed to the findings. Although several cross-national findings are
not at variance with dependencia expectations, at least one finding is. This relates to
"dependent industrialization." This article addresses the theoretical and
empirical debate that followed a survey of the cross-national research. In the theoretical
section dependent industrialization is discussed. The argument is in important ways
different from dependencia thoughts, especially concerning the prediction of long-term
economic growth. In the empirical section the recent empirical critique is addressed and
reanalyses are performed. The findings suggest indirect support for some propositions
developed in the theoretical section.
Three Decades of Industrialization - Moshe Syrquin and Hollis
Hollis Chenery is a professor of economics at Harvard University and a fellow at the
Harvard Institute for International Development. Moshe Syrquin is a professor of economics
at Bar IIan University, lsrael. This article is based on results from research sponsored
by the World Bank. Arabinda Kundu and Shujiro Urata were part of the research team. The
authors thank three anonymous referees for useful comments and Yosi Deutsch and Delfin Go
for help and advice on the econometric part.
Abstract: Economists have long searched for patterns that relate successful development to
structure and policy. This article reviews the experience of growth and industrialization
in the postwar period in more than 100 economies, drawing on time-series data over a
three-decade period. Economies are classified according to their population size, the
share of primary or manufactured goods in their exports, and the weight of exports in
gross domestic product (GDP). We examine the composition of demand, trade, output,
manufacturing type, and factor use overall and between sectors as they relate to income
growth. Higher income growth and more marked transformation are found among the groups
with large populations, a predominance of manufactures in exports, and a larger role of
exports. We also find that the patterns suggested by cross-country analysis are robust
when tested using the time series data now available. Although development experiences may
vary over time and across countries, there is sufficient uniformity within them for the
main features of structural transformation to emerge as clear and consistent patterns of
modern economic growth.
Late Industrialization and the Increased Merit Selection Hypothesis. Ireland as a
Test Case - Christopher T. Whelan and Richard Layte
Economic and Social Research Institute, 4 Burlington Road, Dublin 4, Ireland. Tel.: (353)
1 667 1525; fax: (353) 1 668 6231; European Sociological Review 18:35-50 (2002)
Abstract: The Irish case provides a particularly appropriate test of the increasing merit
selection hypothesis deriving from the liberal theory of industrialization. This is so not
only because the lateness and speed of economic change allows us to capture such change
through a set of national surveys conducted in the past three decades, but also because
such change was based on a sustained policy of increased openness to international
competitive forces. The functional requirements of the economy and a rapid increase in the
supply of those with higher educational qualifications provided an ideal context in which
to observe the movement from ascription to achievement predicted by the liberal theory.
However, while changes in the class structure and a rapid expansion of educational
opportunity had significant consequences in terms of absolute mobility, there was no
evidence of a significant shift towards meritocratic principles. At the same time as the
service class increased their advantage over other classes in the pursuit of educational
qualifications, the impact of educational qualifications on class destination diminished.
Controlling for education, we find that the impact of class origin effects is substantial
and shows little sign of diminishing over time. In our conclusion we discuss the
implications of our findings in the context of the recent debate on meritocracy.
Does Social Capital Promote Industrialization?
Evidence from a Rapid Industrializer
Edward Miguel, Paul Gertler, University of California, Berkeley and NBER
David I. Levine, University of California, Berkeley
The Review of Economics and Statistics, November 2005, Vol. 87, No. 4, Pages 754-762
Abstract: A new stylized fact in development economics is the importance of social capital
in promoting economic growth. This paper examines the effect of social capital on
industrialization in Indonesia. We analyze a rich set of social capital and social
interaction measures, including voluntary associational activity and levels of trust and
informal cooperation. The main finding is that initial social capital does not predict
subsequent industrial development across 274 Indonesian districts. Though these findings
are for only a single nation and may not apply everywhere, they call into question recent
claims regarding social capital and economic development.
Industrialization and Intergenerational Mobility in Sweden
Authors: Maas I.; Van Leeuwen M.H.D.
Source: Acta Sociologica, Volume 45, Number 3, 1 September 2002, pp. 179-194(16)
Abstract: The relationship between industrialization and intergenerational mobility has
been a topic of discussion for over forty years. In this article both total mobility and
relative mobility chances are studied in the decades preceding industrialization and the
decades during industrialization. A high-quality data set is used covering the male
population of a region in the north of Sweden during the 19th century. Total
intergenerational mobility increased during industrialization until, at the end of the
century, both industrialization and the growth of mobility stagnated. Sectorial barriers
resulted in unequal relative mobility chances before and also during industrialization.
However, sons from self-employed classes were less likely to inherit the class position of
their father after the onset of industrialization. At the same time, mobility between
classes differing in status became less frequent. These results show a decline in the
importance of the direct transfer of resources between generations and may indicate the
increasing importance of education.
Industrialization and Urbanization: Did the Steam Engine Contribute to the Growth
of Cities in the United States? - SUKKOO KIM, Washington University,
St. Louis - Department of Economics; National Bureau of Economic Research (NBER)
Abstract: Industrialization and urbanization are seen as interdependent processes of
modern economic development. However, the exact nature of their causal relationship is
still open to considerable debate. This paper uses firm-level data from the manuscripts of
the decennial censuses between 1850 and 1880 to examine whether the adoption of the steam
engine as the primary power source by manufacturers during industrialization contributed
to urbanization. While the data indicate that steam-powered firms were more likely to
locate in urban areas than water-powered firms, the adoption of the steam engine did not
contribute substantially to urbanization.
The First Industrial Revolution: Resolving the Slow Growth/Rapid Industrialization
Nicholas Crafts, London School of Economics
Journal of the European Economic Association, April/May 2005, Vol. 3, No. 2-3, Pages
The paper reviews recent attempts to quantify the British industrial revolution. It
concludes that the episode was one of rapid industrialization but modest growth. To a
considerable extent this is explained by the early adoption of capitalist farming and the
weak impact of steam on productivity growth. However, this should not detract from a
marked acceleration in the rate of technological change by the second quarter of the 19th
century. This may be explicable in an endogenous innovation framework in terms of a
reduced cost of accessing useful knowledge. Models of long-run growth should take this
enhanced technological capability seriously.
Female Autonomy, the
Family, and Industrialization in Java
DIANE L. WOLF, University of Washington
Journal of Family Issues, Vol. 9, No. 1, 85-107 (1988)
It is generally argued that industrialization has an adverse affect on the position of
women due to their exclusion from industrial employment and the resultant erosion of their
status. This article addresses a case study to the question of gender stratification and
industrialization by analyzing the relationship between factory daughters and their
families in Java, Indonesia. The case study suggests that industrialization at the very
least maintains, and may even enhance, female status within the family. I compare this
Southeast Asian case with the East Asian experience to demonstrate the important role
family systems play in mediating the effects of industrialization upon women and family
The Role of Emigration and
Migration in Swedish Industrialization
Urban Karistrom, Stockholm School of Economics, Box 6501, S-113 83 Stockholm, Sweden
International Regional Science Review, Vol. 7, No. 2, 153-174 (1982)
A numerical general equilibrium model has been designed to describe Swedish demoeconomic
development during its first phase of industrialization, the pre-World War I period. Three
dynamic simulations analyze the role of rural-to-urban migration and emigration in Swedish
industrialization and some results are presented concerning their importance for the
development of the Swedish economy.
The industrialization of clinical research - R A Rettig
Health Affairs, Vol 19, Issue 2, 129-146 Copyright © 2000 by Project HOPE
Recent controversies over the protection of human subjects, payment of physicians for
recruiting patients to clinical trials, Food and Drug Administration (FDA) removal of
approved drugs from the market, and reporting of results of clinical trials have
highlighted important facets of clinical research. Less visible has been the
industrialization of clinical research, and especially of clinical trials, that is, its
emergence as a "line of business" of substantial magnitude and rapid growth. The
growth of drug-industry outsourcing of clinical trials and the concomitant rise of a
contract research industry are described in this paper, which argues for greater
transparency in the conduct of both publicly and privately sponsored clinical trials.
Industrialization and Politics: A Century of Union Structural Development in Three
European Countries - Jelle Visser, Universiteit Van Amsterdam, Jeremy
Waddington, Industrial Relations Research Unit, University of Warwick,
European Journal of Industrial Relations, Vol. 2, No. 1, 21-53 (1996)
Using data from three European countries - Sweden, The Netherlands and Britain - and a
period of about one hundred years, this article charts and explains the development of
trade union structure. Although the character of the union movements in the three
countries differs markedly, the rate of change of union structural events (foundations,
dissolutions and mergers) shows considerable similarity. One of the main features of these
structural events is that they occur in waves. The article reviews existing explanations
of trade union structural development in the light of these findings and suggests how they
might be revised.
Stunted and Distorted
Industrialization in Myanmar by Toshihiro Kudo
ABSTRACT: More than 15 years have passed since Myanmar embarked on its transition from a
centrally planned economy to a market-oriented one. The purpose of this paper is to
provide a bird-eye's view of industrial changes from the 1990s up to 2005. The industrial
sector showed a preliminary development in the first half of the 1990s due to an
"open door" policy and liberalization measures. However, a brief period of
growth failed to effect any changes in the economic fundamentals. The industrial sector
still suffers from poor power supplies, limited access to imported raw materials and
machinery, exchange rate instability, limited credit, and frequent changes of government
regulation. Public ownership is still high in key infrastructure sectors, and has failed
to provide sufficient services to private industries. What the government must do first is
to get the fundamentals right.
Industrialization is associated with the urbanization of