How Nations Succeed: Manufacturing, Trade, Industrial Policy, and Economic Development

How Nations Succeed: Manufacturing, Trade, Industrial Policy, and Economic Development

Author: Murat A. Yülek

Publisher: Springer

Published: 2018-08-02

Total Pages: 304

ISBN-13: 9811305684

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This book assesses developmental experience in different countries as well as British expansion following the industrial revolution from a developmental perspective. It explains why some nations are rich and others are poor, and discusses how manufacturing made economies flourish and spur economic development. It explains how today’s governments can design and implement industrial policy, and how they can determine economically strategic sectors to break out of Low and Middle Income Traps. Closely linked to global trade and (im)balances, industrialization was never an accident. Industrialization explains how some countries experience export-led growth and others import-led slowdowns. Many confuse industrialization with the construction of factory buildings rather than a capacity and skill building process through certain stages. Industrial policy helps countries advance through those stages. Explaining technical concepts in understandable terms, the book discusses the capacity and limits of the developmental state in industrialization and in general in economic development, demonstrating how picking-the-winner type focused industrial policy has worked in different countries. It also discusses how industrial policy and science, technology and innovation policies should be sequenced for best results.


Industrial Development and Long-run Prosperity

Industrial Development and Long-run Prosperity

Author: Raphaël Franck

Publisher:

Published: 2017

Total Pages: 94

ISBN-13:

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This research explores the long-run effect of industrialization on the process of development. In contrast to conventional wisdom that views industrial development as a catalyst for economic growth, the study establishes that while the adoption of industrial technology was conducive to economic development in the short-run, it has had a detrimental effect on standards of living in the long-run. Exploiting exogenous geographic and climatic sources of regional variation in the diffusion and adoption of steam engines during the French industrial revolution, the research establishes that regions in which industrialization was more intensive experienced an increase in literacy rates more swiftly and generated higher income per capita in the subsequent decades. Nevertheless, intensive industrialization has had an adverse effect on income per capita, employment and equality by the turn of the 21st century. This adverse effect reflects neither higher unionization and wage rates nor trade protection, but rather underinvestment in human capital and lower employment in skilled-intensive occupations. These findings suggest that the characteristics that permitted the onset of industrialization, rather than the adoption of industrial technology per se, have been the source of prosperity among the currently developed economies that experienced an early industrialization. Thus, developing economies may benefit from the allocation of resources towards human capital formation rather than towards the promotion of industrial development.


Flowers of Evil? Industrial Development and Long-Run Prosperity

Flowers of Evil? Industrial Development and Long-Run Prosperity

Author: Raphaël Franck

Publisher:

Published: 2017

Total Pages: 0

ISBN-13:

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This research explores the effect of industrialization on the process of development. In contrast to conventional wisdom that views industrial development as a catalyst for economic growth, the study establishes that while the adoption of industrial technology was conducive to economic development in the short-run, it has detrimental effects on the standard of living in the long-run. Exploiting exogenous geographic and climatic sources of variation in the diffusion and adoption of steam engines across French departments during the early phases of industrialization, the research establishes that intensive industrialization in the middle of the 19th century increased income per capita in the subsequent decades but diminished it by the turn of the 21st century. The analysis further suggests that the adverse effect of earlier industrialization on long-run prosperity can be attributed to the negative impact of the adoption of unskilled-intensive technologies in the early stages of industrialization on the long-run level of human capital and thus on the incentive to adopt skill-intensive technologies in the contemporary era. Preferences and educational choices of second generation migrants within France indicate that industrialization has triggered a dual techno-cultural lock-in characterized by a reinforcing interaction between technological inertia, reflected by the persistence predominance of low-skilled-intensive industries, and cultural inertia, in the form of a lower predisposition towards investment in human capital. These findings suggest that the characteristics that permitted the onset of industrialization, rather than the adoption of industrial technology per se, have been the source of prosperity among the currently developed economies that experienced an early industrialization. Thus, developing economies may benefit from the allocation of resources towards human capital formation and skilled intensive sectors rather than toward the promotion of traditional unskilled-intensive industrial sectors.


Global Economic History: A Very Short Introduction

Global Economic History: A Very Short Introduction

Author: Robert C. Allen

Publisher: OUP Oxford

Published: 2011-09-15

Total Pages: 192

ISBN-13: 019162053X

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Why are some countries rich and others poor? In 1500, the income differences were small, but they have grown dramatically since Columbus reached America. Since then, the interplay between geography, globalization, technological change, and economic policy has determined the wealth and poverty of nations. The industrial revolution was Britain's path breaking response to the challenge of globalization. Western Europe and North America joined Britain to form a club of rich nations by pursuing four polices-creating a national market by abolishing internal tariffs and investing in transportation, erecting an external tariff to protect their fledgling industries from British competition, banks to stabilize the currency and mobilize domestic savings for investment, and mass education to prepare people for industrial work. Together these countries pioneered new technologies that have made them ever richer. Before the Industrial Revolution, most of the world's manufacturing was done in Asia, but industries from Casablanca to Canton were destroyed by western competition in the nineteenth century, and Asia was transformed into 'underdeveloped countries' specializing in agriculture. The spread of economic development has been slow since modern technology was invented to fit the needs of rich countries and is ill adapted to the economic and geographical conditions of poor countries. A few countries - Japan, Soviet Russia, South Korea, Taiwan, and perhaps China - have, nonetheless, caught up with the West through creative responses to the technological challenge and with Big Push industrialization that has achieved rapid growth through investment coordination. Whether other countries can emulate the success of East Asia is a challenge for the future. ABOUT THE SERIES: The Very Short Introductions series from Oxford University Press contains hundreds of titles in almost every subject area. These pocket-sized books are the perfect way to get ahead in a new subject quickly. Our expert authors combine facts, analysis, perspective, new ideas, and enthusiasm to make interesting and challenging topics highly readable.


Economic Security: Neglected Dimension of National Security ?

Economic Security: Neglected Dimension of National Security ?

Author: National Defense University (U S )

Publisher: Government Printing Office

Published: 2011-12-27

Total Pages: 132

ISBN-13:

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On August 24-25, 2010, the National Defense University held a conference titled “Economic Security: Neglected Dimension of National Security?” to explore the economic element of national power. This special collection of selected papers from the conference represents the view of several keynote speakers and participants in six panel discussions. It explores the complexity surrounding this subject and examines the major elements that, interacting as a system, define the economic component of national security.


Workforce Development:

Workforce Development:

Author: Nicholas C. Bolden

Publisher:

Published: 2020-11-20

Total Pages: 0

ISBN-13: 9781536188110

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"For the century of approximately 1870 through 1970, America's ongoing industrialization brought growing prosperity to much of its citizenry and, after World War II, created a broad middle-class society. After the mid-1970s, however, de-industrialization or the movement of manufacturing production to other countries resulted in growing economic and social stress on many of the working class who did not possess a college education. Donald Trump was the first major U.S. politician to recognize this problem and promise to create "good jobs" for working-class Americans. Yet, his most dramatic policy initiatives in the areas of trade, immigration, and deregulation did not produce dramatic change during his first term. A more positive trend is bubbling up from state and local governments, with the encouragement (but not funding) from the Trump administration. This is the growing importance of workforce development programs, which seek to develop the skills necessary for America's 21st century economy through education reform, industrial apprenticeships, and tax incentives. Does the future of the national economy rest in safe arms with the new re-industrialization strategy and education reform? States and local governments must ascertain what mix of higher education reform, k-12 reform, career readiness, and high-tech training is the best equation for the growing workforce deficit and waning middle-class. In addition, education reform must consider high-tech automation, robotics, and artificial intelligence as a curriculum component in education reform. This policy area must be constructed in ways that not only broadens the middle-class but helps the victims of deindustrialization and reindustrialization. Chapter 1 provides an overview of the challenges facing the working class in the United States and an outline of the book. Chapter 2 describes the stage of industrialization (1870-1970) that created a middle class society. Chapter 3 discusses the periods of deindustrialization (1970-2000) and reindustrialization in advanced manufacturing (early 21st century). Chapter 3 then analyzes the causes (globalization, organizational change, public policy, business strategy, and automation) and consequences (the emergence and shrinkage of a broad middle-class society) of the changing dynamics of industrialization. Chapter 4 presents a case study from the state of Alabama, demonstrating how manufacturing reduces inequality. Chapter 5 discusses how work-based learning programs promote racial diversity. Chapter 6 investigates modern apprenticeship and work-based learning programs. Finally, Chapter 7 considers the implications of this study and argues that workforce development policies hold the key to American prosperity in the 21st century"--


The Political Economy of American Industrialization, 1877–1900

The Political Economy of American Industrialization, 1877–1900

Author: Richard Franklin Bensel

Publisher: Cambridge University Press

Published: 2000-11-06

Total Pages: 550

ISBN-13: 1139936476

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In the late nineteenth century, the United States underwent an extremely rapid industrial expansion that moved the nation into the front ranks of the world economy. At the same time, the nation maintained democratic institutions as the primary means of allocating political offices and power. The combination of robust democratic institutions and rapid industrialization is rare and this book explains how development and democracy coexisted in the United States during industrialization. Most literature focuses on either electoral politics or purely economic analyses of industrialization. This book synthesizes politics and economics by stressing the Republican party's role as a developmental agent in national politics, the primacy of the three great developmental policies (the gold standard, the protective tariff, and the national market) in state and local politics, and the impact of uneven regional development on the construction of national political coalitions in Congress and presidential elections.