Template-type: ReDif-Paper 1.0 
Author-Name: Guadagno, Francesca
Author-Email: guadagno@merit.unu.edu
Author-workplace-name: UNU‐MERIT, Maastricht University, and UNCTAD
Title: The determinanths of industrialisation in developing countries, 1960-2005
Abstract: Industrialisation is generally considered a synonym of economic 
	 development. This paper contributes to the literature on the engine of 
	 growth hypothesis with an empirical analysis of the determinants of 
	 industrialisation. The paper goes back to the Cornwall (1977) model of 
	 manufacturing as an engine of growth and estimates the first equation of 
	 the model, i.e. the equation of manufacturing output growth. Hausman and 
	 Taylor models are estimated for a sample of 74 countries for the period 
	 1960-2005. The results indicate that industrialisation is faster for 
	 larger countries with an undeveloped industrial base, strong export 
	 performance, and undervalued exchange rates. Skills and knowledge 
	 accumulation played an increasingly important role since the mid-1990s. 
	 Robustness checks corroborate the validity of these findings.
Keywords: industrialisation, manufacturing sector, technological change, industrial policy
Classification-JEL: O10, O14, O25
Series: UNU-MERIT Working Papers
Creation-Date: 20160521
Number: 2016-031
File-URL: https://unu-merit.nl/publications/wppdf/2016/wp2016-031.pdf
File-Format: application/pdf
File-Size: 275 kb
Handle: RePEc:unm:unumer:2016031