Services in Developing Economies: The Deindustrialization Debate in Perspective



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Di Meglio Berg, Gisela Amanda and Gallego, Jorge and Maroto, Andrés and Savona, María (2018) Services in Developing Economies: The Deindustrialization Debate in Perspective. Development and Change, 49 (6). pp. 1495-1525. ISSN 0012-155X

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This study contributes to the debate on the premature deindustrialization of developing countries by analysing the contribution of services to aggregate productivity and output growth within a Kaldorian framework. The article revisits Kaldor’s Growth Laws and empirically tests them for a number of economic activities, including four service branches across 29 developing economies in Asia, Latin America and sub-Saharan Africa over three decades (1975–2005). Panel data estimations are complemented by a shiftshare decomposition of labour productivity growth. The findings support the Kaldorian argument for both manufacturing and business services’ contribution to aggregate productivity growth. Conversely, other services slow down aggregate productivity and output growth. The authors suggest qualifying and repositioning the debate on premature deindustrialization within a broader reflection on the opportunities for development linked to structural change. The analysis claims that these opportunities might include not only manufacturing sectors, but also business services.

Item Type:Article
Subjects:Social sciences > Economics > Economic development
Social sciences > Economics > Business enterprises
Social sciences > Economics > Industrial organization
ID Code:60672
Deposited On:27 May 2020 11:32
Last Modified:19 Oct 2020 11:57

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