Asia’s Industrial Transformation: The Role of Manufacturing and Global Value Chains (Part 1)
Felipe, Jesus | July 2018
Abstract
This paper argues that the single most important factor that explains East Asia’s development success was its fast structural transformation toward industrialization, manufacturing in particular. Workers moved out of agriculture into manufacturing, and the sector diversified and upgraded its structure. Manufacturing activities are subject to increasing returns to scale, and many manufacturing goods have high income elasticities of demand. For these reasons, manufacturing is referred to as the “engine of growth.” It is in the context of industrialization that openness played an important role in East Asia’s success, i.e., the connection between “export-led growth” (the relaxation of the balance-of-payments constraint on foreign exchange) and industrialization. Part 1 of the paper documents the extent of structural transformation in developing Asia. Second, it analyzes the relationship between the export led growth model (i.e., the relaxation of the balance-of-payments constraint on foreign exchange) and industrialization. Finally, it reviews the industrialization experiences of Japan and the Republic of Korea , and discusses the recent deindustrialization debate.
Citation
Felipe, Jesus. 2018. Asia’s Industrial Transformation: The Role of Manufacturing and Global Value Chains (Part 1). © Asian Development Bank. http://hdl.handle.net/11540/8518. License: CC BY 3.0 IGO.ISSN
2313-6537 (print)
2313-6545 (electronic)
Keywords
Telecommunication Companies
Rural Rehabilitation
Biotechnology
Interindustry Trade
Industrial Policy
Industrial Investment
Industrial Development
Small Scale Industry
Medium Scale Industry
Local Industry
Transport Infrastructure
Trade regulations
Telecommunications Industry
Computers
Trade data interchange
Access to markets
E-Commerce
Trade And Development
Large Scale Industry
Regional Trade
Commerce and Industry
Trade Negotiations
Merchandise Trade
Domestic Trade
Computer Industry
Trade Regulation
intellectual Property Rights
Rural development
Unfair competition
Supply and demand
Energy policy
Developing countries
Industrial organizations
Creative industries
Investment banking
Microfinance
Financial planning industry
Infrastructure
Manufactures
Business failures
Wages and labor productivity
Microelectronics industry
Electronic industries
Digital electronics
Microelectronics
Electronic commerce
Business enterprises
Digital
Show allCollapse