A Manufacturing (Re)Naissance? Industrialization in the Developing World

Hagen Kruse; Emmanuel Mensah; Kunal Sen; Gaaitzen de Vries

doi:10.1057/s41308-022-00183-7

A Manufacturing (Re)Naissance? Industrialization in the Developing World

Hagen Kruse, Emmanuel Mensah, Kunal Sen, Gaaitzen de Vries^*

^*Corresponding author for this work

Research output: Contribution to journal › Article › Academic › peer-review

Abstract

This paper examines industrialization in developing countries. It introduces the
GGDC/UNU-WIDER Economic Transformation Database, which provides consistent annual data of employment, real and nominal value added by 12 sectors in
51 economies for the period 1990–2018. Regressions that control for income and
population indicate a manufacturing renaissance in several middle-income countries
since the 2000s. We observe industrialization in many low-income Asian and sub-Saharan African countries. The industrial naissance in sub-Saharan Africa appears characterized by unregistered firms that expand employment.

Original language	English
Pages (from-to)	439–473
Number of pages	35
Journal	IMF Economic Review
Volume	71
Issue number	2
Early online date	15 Aug 2022
DOIs	https://doi.org/10.1057/s41308-022-00183-7
Publication status	Published - 2 Jun 2023
Externally published	Yes

Bibliographical note

Funding Information:
We would like to thank the editor Andrei Levchenko, two anonymous reviewers, Johannes van Biesebroeck, Xinshen Diao, Calumn Hamilton, Robert Inklaar, Sam Jones, Joseph Kaboski, Justin Lin, Maggie McMillan, Marti Mestieri, Dani Rodrik, Noah Smith, Andy Sumner, Dirk Willem te Velde, Marcel Timmer and participants at numerous seminars and conferences for stimulating comments and suggestions. We are indebted to the other team members, Linda Arfelt, Dorothea Drees, Mareike Godemann, Calumn Hamilton, Bente Jessen-Thiesen, Ahmet Ihsan Kaya and Pieter Woltjer, for their excellent research assistance to the Economic Transformation Database at the Groningen Growth and Development Centre (GGDC). We are grateful for financial support by UNU-WIDER as part of its Varieties of Structural Transformation program.

Funding Information:
We would like to thank the editor Andrei Levchenko, two anonymous reviewers, Johannes van Biesebroeck, Xinshen Diao, Calumn Hamilton, Robert Inklaar, Sam Jones, Joseph Kaboski, Justin Lin, Maggie McMillan, Marti Mestieri, Dani Rodrik, Noah Smith, Andy Sumner, Dirk Willem te Velde, Marcel Timmer and participants at numerous seminars and conferences for stimulating comments and suggestions. We are indebted to the other team members, Linda Arfelt, Dorothea Drees, Mareike Godemann, Calumn Hamilton, Bente Jessen-Thiesen, Ahmet Ihsan Kaya and Pieter Woltjer, for their excellent research assistance to the Economic Transformation Database at the Groningen Growth and Development Centre (GGDC). We are grateful for financial support by UNU-WIDER as part of its Varieties of Structural Transformation program.

Publisher Copyright:
© 2022, International Monetary Fund.

Keywords

N10
O14
O47

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1057/s41308-022-00183-7

Cite this

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abstract = "This paper examines industrialization in developing countries. It introduces the GGDC/UNU-WIDER Economic Transformation Database, which provides consistent annual data of employment, real and nominal value added by 12 sectors in 51 economies for the period 1990–2018. Regressions that control for income and population indicate a manufacturing renaissance in several middle-income countries since the 2000s. We observe industrialization in many low-income Asian and sub-Saharan African countries. The industrial naissance in sub-Saharan Africa appears characterized by unregistered firms that expand employment. ",

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