Template-type: ReDIF-Paper 1.0
Author-Name: Lavopa, Alejandro
Author-Email: lavopa@merit.unu.edu
Author-Workplace-Name: UNU-MERIT/MGSoG
Author-Name: Szirmai, Adam
Author-Email: szirmai@merit.unu.edu
Author-Workplace-Name: UNU-MERIT/MGSoG
Title: Industrialization, employment and poverty
Abstract: During the post-war period, there was consensus among development 
	 theorists that industrialization constituted the prime avenue for 
	 economic development. Manufacturing was identified as the main engine of 
	 economic growth, economic development and social progress. In recent 
	 years, however, the role of manufacturing has been challenged and 
	 questions have been raised concerning the continued importance of 
	 manufacturing for economic development, catch up and poverty reduction 
	 in developing countries. Some observers even argue that we live in an 
	 era of service-led growth   
	 This report assesses the extent to which these challenges are justified, 
	 focusing on the role played by manufacturing with regard to the 
	 different dimensions of economic development: growth, employment 
	 creation and poverty reduction. The main question addressed in this 
	 report is whether or not manufacturing plays an important role in the 
	 process of economic growth, the creation of new employment and the 
	 alleviation of poverty in the least developed economies and in emerging 
	 middle-income countries. This report argues that manufacturing continues 
	 to be of considerable importance for economic development, employment 
	 creation and the reduction of poverty. Manufacturing is not the only 
	 sector of importance in developing countries of the present period. But 
	 the relative neglect of industrialization and industrial investment in 
	 modern policy debates is not justified. It is a sector which deserves 
	 special attention from policy makers and the financial community.  
Classification-JEL: O14, J21, I32
Keywords: industrialization, manufacturing, employment creation, poverty reduction
Series: UNU-MERIT Working Papers
Creation-Date: 2012
Number: 2012-081
File-URL: https://unu-merit.nl/publications/wppdf/2012/wp2012-081.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2012081