Rethinking Development Policy: Deindustrialization, Servicification and Structural Transformation
IMF Working Papers, September 28, 2018
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- Rethinking Development Policy: Deindustrialization, Servicification and Structural Transformation
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Bibliographic details
- Authors: Manoj Atolia, Prakash Loungani, Milton Marquis, Chris Papageorgiou
- Published: September 28, 2018
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484377499.001
Overview
- Authors: Manoj Atolia, Prakash Loungani, Milton Marquis, Chris Papageorgiou
- Date: September 28, 2018
- Paper type: IMF Working Paper (Working Paper No. 2018/223)
- Purpose: Reassess current theories of structural transformation and the roles of private and public fundamentals in that process; summarize representative past and current country experiences; analyze the roles of manufacturing, policy, and the international environment; examine premature deindustrialization and its relation to a middle-income trap; draw conclusions on prospective future paths for structural transformation and development policies.
Major themes and analytical focus
- Structural transformation theory and its current formulations.
- Role of private fundamentals and public fundamentals in driving structural transformation.
- Comparative experiences of various countries in their structural transformation trajectories.
- Specific focus on manufacturing, policy choices, and the international environment as shaping factors.
- Salient aspects of the debate on premature deindustrialization and the middle-income trap.
- Implications for future development policy design.
Key findings (as summarized in the source)
- The paper provides a "fresh look" at theories of structural transformation and the role of private and public fundamentals.
- It summarizes representative past and current country experiences with emphasis on manufacturing, policy, and the international environment in shaping structural transformation.
- The paper describes key aspects of the current debate on premature deindustrialization and its relation to a middle-income trap as they pertain to the path of structural transformation.
- Conclusions are drawn regarding prospective future paths for structural transformation and development policies.
Policy implications and recommendations (from the source summary)
- Development policies should consider the roles of manufacturing, policy frameworks, and the international environment when shaping structural transformation strategies.
- The analysis of premature deindustrialization and middle-income dynamics should inform policy choices aimed at sustaining productivity growth and structural change.
- Both private and public fundamentals merit attention in designing policies to influence the trajectory of structural transformation.
Subjects and keywords (as listed)
- Subjects: Economic growth, Economic sectors, Employment, Financial crises, Income, Labor, Manufacturing, National accounts, Production, Productivity, Structural transformation
- Keywords: Development policies, Employment, export structure, Global, growth diagnostics, high-productivity IT service, high-productivity service, Income, labor-saving technology, Manufacturing, middle-income economy, middle-income trap, net importer, open economy, premature deindustrialization, Productivity, productivity economy, push factors, structural transformation