[go: up one dir, main page]
More Web Proxy on the site http://driver.im/
IDEAS home Printed from https://ideas.repec.org/a/tou/journl/v54y2021p145-160.html
   My bibliography  Save this article

Note on the role of domestic and external demand on the process of premature deindustrialization

Author

Listed:
  • Betty ASSE

    (Université de Bordeaux – LAREFI)

  • Dalila CHENAF-NICET

    (Université de Bordeaux – LAREFI)

Abstract
For some authors (Rodrik, 2015 and 2017), deindustrialization is premature in sub-Saharan countries. This implies that the period of industrialization has been too short, with too little job creation and growth to guarantee a development trajectory. This article studies the impacts of different demands (global/domestic) on industrialization. Our work shows that SSA countries suffer from premature deindustrialization that is rooted in de-mand mechanisms and not just in supply mechanisms.

Suggested Citation

  • Betty ASSE & Dalila CHENAF-NICET, 2021. "Note on the role of domestic and external demand on the process of premature deindustrialization," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 54, pages 145-160.
    • Handle: RePEc:tou:journl:v:54:y:2021:p:145-160
    as

    Download full text from publisher

    File URL: https://regionetdeveloppement.univ-tln.fr/wp-content/uploads/8_Nicet-formate.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Stefan Dercon & Douglas Gollin, 2014. "Agriculture in African Development: Theories and Strategies," Annual Review of Resource Economics, Annual Reviews, vol. 6(1), pages 471-492, October.
    2. François Bourguignon & Thierry Verdier, 2005. "The Political Economy of Education and Development in an Open Economy," Review of International Economics, Wiley Blackwell, vol. 13(3), pages 529-548, August.
    3. Costinot, Arnaud, 2009. "On the origins of comparative advantage," Journal of International Economics, Elsevier, vol. 77(2), pages 255-264, April.
    4. Breinlich, Holger & Cuñat, Alejandro, 2013. "Geography, non-homotheticity, and industrialization: A quantitative analysis," Journal of Development Economics, Elsevier, vol. 103(C), pages 133-153.
    5. Balasubramanyam, V N & Salisu, M & Sapsford, David, 1996. "Foreign Direct Investment and Growth in EP and IS Countries," Economic Journal, Royal Economic Society, vol. 106(434), pages 92-105, January.
    6. Dollar, David & Kraay, Aart, 2002. "Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September.
    7. Bertola, Giuseppe, 1994. "Flexibility, investment, and growth," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 215-238, October.
    8. Davis, Donald R. & Weinstein, David E., 2003. "Market access, economic geography and comparative advantage: an empirical test," Journal of International Economics, Elsevier, vol. 59(1), pages 1-23, January.
    9. David H. Autor & David Dorn & Gordon H. Hanson, 2013. "The China Syndrome: Local Labor Market Effects of Import Competition in the United States," American Economic Review, American Economic Association, vol. 103(6), pages 2121-2168, October.
    10. McMillan, Margaret & Rodrik, Dani & Verduzco-Gallo, Íñigo, 2014. "Globalization, Structural Change, and Productivity Growth, with an Update on Africa," World Development, Elsevier, vol. 63(C), pages 11-32.
    11. Acemoglu, Daron & Zilibotti, Fabrizio, 1997. "Was Prometheus Unbound by Chance? Risk, Diversification, and Growth," Journal of Political Economy, University of Chicago Press, vol. 105(4), pages 709-751, August.
    12. Philippe Aghion, 2005. "Growth and Institutions," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 32(1), pages 3-18, March.
    13. Alvarez-Cuadrado, Francisco & Long, Ngo & Poschke, Markus, 2017. "Capital-labor substitution, structural change and growth," Theoretical Economics, Econometric Society, vol. 12(3), September.
    14. Acemoglu, Daron & Johnson, Simon & Robinson, James & Thaicharoen, Yunyong, 2003. "Institutional causes, macroeconomic symptoms: volatility, crises and growth," Journal of Monetary Economics, Elsevier, vol. 50(1), pages 49-123, January.
    15. Kiminori Matsuyama, 2009. "Structural Change in an Interdependent World: A Global View of Manufacturing Decline," Journal of the European Economic Association, MIT Press, vol. 7(2-3), pages 478-486, 04-05.
    16. Oksana M. LEUKHINA & Stephen J. TURNOVSKY, 2016. "Push, Pull, and Population Size Effects in Structural Development: Long-run Trade-offs," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 82(4), pages 423-457, December.
    17. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-959, December.
    18. Kristian Behrens & Giordano Mion & Yasusada Murata & Jens Südekum, 2014. "Trade, Wages, And Productivity," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 55(4), pages 1305-1348, November.
    19. Alfaro, Laura & Chanda, Areendam & Kalemli-Ozcan, Sebnem & Sayek, Selin, 2004. "FDI and economic growth: the role of local financial markets," Journal of International Economics, Elsevier, vol. 64(1), pages 89-112, October.
    20. repec:hoo:wpaper:e-92-3 is not listed on IDEAS
    21. W. W. Rostow, 1959. "The Stages Of Economic Growth," Economic History Review, Economic History Society, vol. 12(1), pages 1-16, August.
    22. Elhanan Helpman & Oleg Itskhoki & Stephen Redding, 2010. "Inequality and Unemployment in a Global Economy," Econometrica, Econometric Society, vol. 78(4), pages 1239-1283, July.
    23. Dani Rodrik, 2016. "Premature deindustrialization," Journal of Economic Growth, Springer, vol. 21(1), pages 1-33, March.
    24. Douglas Gollin & Remi Jedwab & Dietrich Vollrath, 2016. "Urbanization with and without industrialization," Journal of Economic Growth, Springer, vol. 21(1), pages 35-70, March.
    25. L. Rachel Ngai & Christopher A. Pissarides, 2007. "Structural Change in a Multisector Model of Growth," American Economic Review, American Economic Association, vol. 97(1), pages 429-443, March.
    26. Acemoglu, Daron & Johnson, Simon & Robinson, James A., 2005. "Institutions as a Fundamental Cause of Long-Run Growth," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 6, pages 385-472, Elsevier.
    27. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007. "What you export matters," Journal of Economic Growth, Springer, vol. 12(1), pages 1-25, March.
    28. Daron Acemoglu & Veronica Guerrieri, 2008. "Capital Deepening and Nonbalanced Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 116(3), pages 467-498, June.
    29. Matsuyama, Kiminori, 1992. "Agricultural productivity, comparative advantage, and economic growth," Journal of Economic Theory, Elsevier, vol. 58(2), pages 317-334, December.
    30. Oksana M. Leukhina & Stephen J. Turnovsky, 2016. "Population Size Effects in the Structural Development of England," American Economic Journal: Macroeconomics, American Economic Association, vol. 8(3), pages 195-229, July.
    31. Rodrik, Dani, 2011. "The Future of Convergence," Scholarly Articles 5131504, Harvard Kennedy School of Government.
    32. Margaret S. McMillan & Dani Rodrik, 2011. "Globalization, Structural Change and Productivity Growth," NBER Working Papers 17143, National Bureau of Economic Research, Inc.
    33. Kwangsu Kim, 2015. "Demand and structural change in Adam Smith’s view of economic progress," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 39(1), pages 245-264.
    34. Marouane Alaya & Dalila Nicet-Chenaf & Éric Rougier, 2009. "À quelles conditions les IDE stimulent-ils la croissance ?. IDE, croissance et catalyseurs dans les pays méditerranéens," Mondes en développement, De Boeck Université, vol. 0(4), pages 119-138.
    35. Hausmann, Ricardo & Rodrik, Dani, 2003. "Economic development as self-discovery," Journal of Development Economics, Elsevier, vol. 72(2), pages 603-633, December.
    36. Céline Allard & Mr. Jorge I Canales Kriljenko & Mr. Jesus R Gonzalez-Garcia & Emmanouil Kitsios & Mr. Juan P Trevino & Ms. Wenjie Chen, 2016. "Trade Integration and Global Value Chains in Sub-Saharan Africa: In Pursuit of the Missing Link," IMF Departmental Papers / Policy Papers 2016/004, International Monetary Fund.
    37. Dalila Nicet-Chenaf & Eric Rougier, 2011. "New exports matter: Discoveries, foreign direct investment and growth, an empirical assessment for Middle East and North African countries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 20(4), pages 507-533.
    38. Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(1), pages 83-116.
    39. Tito Boeri & Katherine Terrell, 2002. "Institutional Determinants of Labor Reallocation in Transition," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 51-76, Winter.
    40. Mr. Prakash Loungani & Mr. Saurabh Mishra & Mr. Chris Papageorgiou & Ke Wang, 2017. "World Trade in Services: Evidence from A New Dataset," IMF Working Papers 2017/077, International Monetary Fund.
    41. Nicholas Kaldor, 1966. "Marginal Productivity and the Macro-Economic Theories of Distribution: Comment on Samuelson and Modigliani," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 33(4), pages 309-319.
    42. Ghani, Ejaz & O'Connell, Stephen D., 2014. "Can service be a growth escalator in low-income countries ?," Policy Research Working Paper Series 6971, The World Bank.
    43. Stefan Dercon & Douglas Gollin, 2014. "Agriculture in African Development: A Review of Theories and Strategies," CSAE Working Paper Series 2014-22, Centre for the Study of African Economies, University of Oxford.
    44. Dani Rodrik, 2011. "The future of economic convergence," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 13-52.
    45. Ho, Chi Pui, 2015. "Population growth and structural transformation," MPRA Paper 68014, University Library of Munich, Germany.
    46. Enache,Maria & Ghani,Syed Ejaz & O'Connell,Stephen, 2016. "Structural transformation in Africa : a historical view," Policy Research Working Paper Series 7743, The World Bank.
    47. Shigehisa Kasahara, 2004. "The Flying Geese Paradigm: A Critical Study Of Its Application To East Asian Regional Development," UNCTAD Discussion Papers 169, United Nations Conference on Trade and Development.
    48. Alan Gelb, Christian Meyer, and Vijaya Ramachandran, 2014. "Development as Diffusion: Manufacturing Productivity and Sub-Saharan Africa’s Missing Middle - Working Paper 357," Working Papers 357, Center for Global Development.
    49. Hopenhayn, Hugo & Rogerson, Richard, 1993. "Job Turnover and Policy Evaluation: A General Equilibrium Analysis," Journal of Political Economy, University of Chicago Press, vol. 101(5), pages 915-938, October.
    50. Oded Galor & Andrew Mountford, 2008. "Trading Population for Productivity: Theory and Evidence," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 75(4), pages 1143-1179.
    51. Dani Rodrik, 2013. "Unconditional Convergence in Manufacturing," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(1), pages 165-204.
    52. Caprio, Gerard (ed.), 2012. "The Evidence and Impact of Financial Globalization," Elsevier Monographs, Elsevier, edition 1, number 9780123978745.
    53. Kristian Behrens & Giordano Mion & Yasusada Murata & Jens Südekum, 2014. "Trade, Wages, And Productivity," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 55, pages 1305-1348, November.
    54. Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 681-712.
    55. Dalila Chenaf-Nicet, 2020. "Dynamics of Structural Change in a Globalized World: What Is the Role Played by Institutions in the Case of Sub-Saharan African Countries?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(4), pages 998-1037, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dalila Chenaf-Nicet, 2020. "Dynamics of Structural Change in a Globalized World: What Is the Role Played by Institutions in the Case of Sub-Saharan African Countries?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(4), pages 998-1037, September.
    2. Melia, Elvis, 2020. "African jobs in the digital era: Export options with a focus on online labour," IDOS Discussion Papers 3/2020, German Institute of Development and Sustainability (IDOS).
    3. Breinlich, Holger & Cuñat, Alejandro, 2013. "Geography, non-homotheticity, and industrialization: A quantitative analysis," Journal of Development Economics, Elsevier, vol. 103(C), pages 133-153.
    4. Delgado, Michael S. & McCloud, Nadine & Kumbhakar, Subal C., 2014. "A generalized empirical model of corruption, foreign direct investment, and growth," Journal of Macroeconomics, Elsevier, vol. 42(C), pages 298-316.
    5. Dorinet, Elizavetta & Jouvet, Pierre-André & Wolfersberger, Julien, 2021. "Is the agricultural sector cursed too? Evidence from Sub-Saharan Africa," World Development, Elsevier, vol. 140(C).
    6. Nouf Nasser Alsharif, 2017. "Three essays on growth and economic diversification in resource-rich countries," Economics PhD Theses 0317, Department of Economics, University of Sussex Business School.
    7. Dorinet, Elizavetta & Jouvet, Pierre-André & Wolfersberger, Julien, 2021. "Is the agricultural sector cursed too? Evidence from Sub-Saharan Africa," World Development, Elsevier, vol. 140(C).
    8. Liu, Yanyan & Barrett, Christopher B. & Pham, Trinh & Violette, William, 2020. "The intertemporal evolution of agriculture and labor over a rapid structural transformation: Lessons from Vietnam," Food Policy, Elsevier, vol. 94(C).
    9. Nuno Torres & Óscar Afonso & Isabel Soares, 2010. "The connection between oil and economic growth revisited," FEP Working Papers 377, Universidade do Porto, Faculdade de Economia do Porto.
    10. Valeriy V. Mironov & Liudmila D. Konovalova, 2019. "Structural changes and economic growth in the world economy and Russia," Russian Journal of Economics, ARPHA Platform, vol. 5(1), pages 1-26, April.
    11. Diao, Xinshen & McMillan, Margaret, 2018. "Toward an Understanding of Economic Growth in Africa: A Reinterpretation of the Lewis Model," World Development, Elsevier, vol. 109(C), pages 511-522.
    12. Trung V. Vu, 2022. "Does institutional quality foster economic complexity? The fundamental drivers of productive capabilities," Empirical Economics, Springer, vol. 63(3), pages 1571-1604, September.
    13. Nuno Torres, Oscar Afonso, and Isabel Soares, 2012. "Oil Abundance and Economic Growth--A Panel Data Analysis," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    14. Hoyos, Mateo & Coronado, José Alejandro & Martins, Guilherme Klein, 2024. "Local and Spillover Effects of Trade on Structural Transformation: Evidence from Brazil," SocArXiv rfqvt, Center for Open Science.
    15. Olivier Cadot & Jaime de Melo & Patrick Plane & Laurent Wagner & Martha Tesfaye Woldemichael, 2016. "Industrialisation et transformation structurelle : l’Afrique subsaharienne peut-elle se développer sans usines ?," Revue d’économie du développement, De Boeck Université, vol. 24(2), pages 19-49.
    16. Perez Sebastian,Fidel & Steinbuks,Jevgenijs & Feres,Jose Gustavo & Trotter,Ian Michael, 2020. "Electricity Access and Structural Transformation : Evidence from Brazil's Electrification," Policy Research Working Paper Series 9182, The World Bank.
    17. Uy, Timothy & Yi, Kei-Mu & Zhang, Jing, 2013. "Structural change in an open economy," Journal of Monetary Economics, Elsevier, vol. 60(6), pages 667-682.
    18. Comunale, Mariarosaria & Felice, Giulia, 2022. "Trade and structural change: An empirical investigation," International Economics, Elsevier, vol. 171(C), pages 58-79.
    19. Naudé, Wim & Tregenna, Fiona, 2023. "Africa's Industrialization Prospects: A Fresh Look," IZA Discussion Papers 16043, Institute of Labor Economics (IZA).
    20. Mensah, Emmanuel B., 2020. "Is sub-Saharan Africa deindustrializing?," MERIT Working Papers 2020-045, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

    More about this item

    Keywords

    Structural change; Premature deindustrialization; Demand for services; Sub-Saharan Africa;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tou:journl:v:54:y:2021:p:145-160. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christophe Van Huffel (email available below). General contact details of provider: https://edirc.repec.org/data/letlnfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.