Activation of a Modern Industry
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Summary:
This paper constructs an integrated framework to disentangle the underlying economic mechanism of industrial transformation. We consider three essential elements for the analysis: skill requirements, industry-wide spillovers, and degrees of consumption subsistence. We find that human and nonhuman resources, production factor matching, and industrial coordination are all important for activating a modern industry. In the process of industrial transformation, job destruction may exceed job creation, and income distribution may get worse immediately following the activation of a modern industry. An array of policy prescriptions for advancing a poor country is provided.
Series:
Working Paper No. 2002/015
Subject:
English
Publication Date:
January 1, 2002
ISBN/ISSN:
9781451843279/1018-5941
Stock No:
WPIEA0152002
Pages:
17
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