Premature Deindustrialization, Structural Transformation, and Economic Development: Review and Policy Analysis
This paper describes theories of structural transformation and the role of private and public fundamentals in the process
Abstract
This paper provides a concise description of the current theories of structural transformation and the role of private and public fundamentals in the process. It summarizes some representative past and current experiences of various countries vis-`a-vis structural transformation with a focus on the roles of manufacturing, policy, and the international environment in shaping the trajectory of structural transformation. The salient aspects of the current debate on premature deindustrialization and its relation to a middle income trap are described as they related to the path of structural transformation. Conclusions are drawn regarding prospective future paths for structural transformation and policies to avoid the middle-income trap
This work is part of the ‘Macroeconomics in Low-income countries’ programme
Citation
Manoj Atolia, Milton Marquis, Prakash Loungani, Chris Papageorgiou (2017) Premature Deindustrialization, Structural Transformation, and Economic Development: Review and Policy Analysis. IMF