Sociology Index -

INDUSTRIALIZATION

Industrialization is the process of developing an economy founded on the mass manufacturing of goods.

Industrialization is associated with the urbanism, an extensive division of labour, a wage economy, differentiation of institutions, and growth of mass communication, mass society and mass markets.

Many western developed and industrialized societies are now described as post industrial (post-industrial thesis), since much economic activity is based on the production of services, knowledge or symbols.

Colonialism and 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)
This article critiques W. Arthur Lewis’s 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.

Industrialization and Poverty Alleviation: Pro-Poor Industrialization Strategies Revisited 
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 
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.

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.

"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, Hong Kong
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.

Industrialization and health 
Simon Szreter, St John’s College, Cambridge, UK - British Medical Bulletin 69:75-86 (2004)
Correspondence to: Simon Szreter, Reader in History and Public Policy, University of Cambridge and Fellow, St John’s College, Cambridge, St John’s 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 conflict—and their subsequent resolution in favour of the health interests of the working-class majorities—were 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 Korea's experience 
L Kim, College of Business Administration, Korea University, Seoul, Korea 136-701.
Industrial and Corporate Change, Volume 8, Number 1, pp. 111-136.
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 other countries.

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 Chenery 
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 Paradox
Nicholas Crafts, London School of Economics
Journal of the European Economic Association, April/May 2005, Vol. 3, No. 2-3, Pages 525-534
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 change.

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.
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 society.