Indonesian Industrialization

This paper examines Indonesia.s industrialization performance and policies, including its latecomer status, its generally rapid growth since the mid-1960s, its pronounced policy and performance episodes, and its ambivalent embrace of globalization. Particular attention is accorded to the deep economic-political crisis of 1997.98 and its aftermath, with the benefit of a rich, firm level database. The crisis resulted in slower industrial growth, less industrial mobility, and sluggish formal sector employment growth. We also consider some of the general analytical and policy implications for developing country industrialization from the Indonesian experience.Indonesia, industrialization, economic crises, jobless growth

Polluting Industrialization

Recently, many contributions have focused on the relationship between capital accumulation, growth and population dynamics, introducing fertility choice in macro-dynamic models. In this paper, we go one step further highlighting also the link with pollution. We develop a simple overlapping generations model with paternalistic altruism according to wealth and environmental concerns. One can therefore explain a simultaneous increase of capital intensity, population growth and pollution, namely a polluting industrialization. We show in addition that a permanent productivity shock, possibly associated to technological innovations, promotes such a polluting development process, escaping a trap where the economy is relegated to a low capital intensity, population growth and pollution.Growth; Population dynamics; Pollution; Altruism; Development

Inequality and Industrialization

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.

THE TRANSITION PROCESS IN CHINA: AN ECONOMIC DEVELOPMENT PERSPECTIVE

During the last 25 years, the Chinese economy has experienced significant changes: the centrally planned economy has been reformed gradually into a market economy; the traditional agricultural economy is becoming more and more a modern industrial economy. In a dynamic two-sector-two-segment model we demonstrate that the economic reform has changed the industrialization mechanism in China. It released a decentralized industrialization process beside the centrally planned Soviet-type industrialization. This decentralized industrialization is shown to be the ultimate driving force of the transition from plan to market in China.Transition, Economic Reform, Industrialization, the Chinese Economy

Colonialism and Industrialization: Empirical Results

This paper presents theory and evidence to show that imperialism was a major factor impeding the spread of the industrial revolution during the century ending in the 1950s. Two empirical results stand out. First, analysis of historical evidence shows that most sovereign countries were implementing active industrial policies during the nineteenth century, while policies in dependent countries were biased in the opposite direction. Second, when allowance is made for economic determinants, industrialization in dependent countries in 1960 is found to be significantly lower than in sovereign countries. This result is shown to be quite robust to changes in data, sample size, functional forms, and specifications of the estimating equations. In particular, the basic results are not affected by the inclusion of a dummy for Sub-Saharan Africa

Rethinking Import-substituting Industrialization: Development Strategies and Institutions in Taiwan and China

import-substituting industrialization, export-oriented industrialization, development strategies, institutions

The Hong Kong model of industrialization

Hong Kong is an interesting case study of economic development for two reasons: (1) the Colony is one of the few successful cases of industrialization and economic development among contemporary less developed countries; and (2) it closely resembles and is in fact a last remnant of the laissez-faire economy. This paper describes the pattern of industrialization in Hong Kong and its economic rationale in terms of the theory of international comparative advantage. The special features of industrialization in the Colony, taken together, constitute what is called the "Hong Kong Model of Industrialization." The "model" is found to be a pure case of industrialization through exploitation of comparative advantage. --

Banks as Catalysts for Industrialization

We provide a new theory of the role of banks as catalysts for industrialization. In their influential analysis of 19th century continental European industrialization, Gerschenkron and Schumpeter accorded banks a central role, arguing that they promoted the creation of new industries. We formalize this role of banks by introducing financial intermediaries into a 'big push' model. We show that banks may act as `catalysts' for industrialization provided that they are sufficiently large to mobilize a critical mass of firms, and that they possess sufficient market power to make profits from coordination. The theory provides simple conditions that help to explain why banks seem to play a creative role in some but not in other emerging markets. The model also shows that universal banking helps to reduce the cost of coordination. Finally, we show that one disadvantage of catalytic banks is that they may favor concentration in the industrial sector.http://deepblue.lib.umich.edu/bitstream/2027.42/39827/3/wp443.pd

[Review of] Calvin Winslow, ed. Waterfront Workers: New Perspectives on Race and Class

Students of race and ethnic relations have used two perspectives to explain the effects of industrialization on dominant and subordinate relations. One view holds that the process of industrialization results in individuals becoming detached from associations based in race and ethnicity as their life chances are determined by their participation and position in the economic order. A second perspective suggests that industrialization inevitably leads to tension and hostility between groups because they are forced to compete for scarce resources. The articles in Waterfront Workers: New Perspectives on Race and Class attempt to bridge the gap between these conflicting perspectives by suggesting that both may apply, as longshoremen who are racially and ethnically different attempt to adjust to social changes in their occupational setting