TABLE 12 - uploaded by Stephen Broadberry
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This paper provides estimates of Indian GDP constructed from the output side for the period 1600-1871, and combines them with population estimates to track changes in living standards. Indian per capita GDP declined steadily. As British living standards increased from the mid-seventeenth century, India fell increasingly behind. Whereas in 1650, Ind...
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Aims To provide a reliable population estimate of Dotterel against which past and future estimates could be compared. Methods Over half of the potential breeding habitat in Britain, selected randomly and to cover protected sites and former breeding sites for Dotterel, was surveyed through a single visit when Dotterel had young chicks. Results After...
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If industrial policy has a potential, it has to be demonstrated by some successful experiences. This chapter presents four examples as best practices. It narrates how South Korea developed the nuclear power generation industry as an export sector literally from scratch through industrial policies. Likewise, it reviews the development of the South Korean automobile industry, the Swedish aircraft industry (Saab), and the pan-European civil aircraft industry (Airbus) through industrial policy.
This chapter sets out to answer some basic questions on manufacturing: Is manufacturing of any use? Is manufacturing a poor man’s business? Who manufactures and exports? Why is the share of manufacturing in total gross domestic product (GDP) diminishing globally? Which countries exports globally? Does manufacturing always make money? Which countries are (more) industrialized?
This chapter discusses questions such as why industrial policy is needed (especially in developing countries)? What kinds of policy are needed at what stage along the industrialization process? What are the criteria in selecting the appropriate industrial policy? It also discusses the sequencing between industrial policy on the one hand and science, technology, and innovation (STI) policies on the other. Should they be used concurrently? Can STI policies be effective in a less industrialized country? Finally, the chapter presents a methodology for strategic sectors to be selected by policy makers from an industrial policy perspective. This is done for the first time globally. Do all manufacturing subsectors have the same developmental impact? Or, are some subsectors different from others? If so, how can these strategic sectors be identified?
Global imbalances are still crucial. They are driven by major trade deficits of some countries (such as Germany and China) and surpluses of others (such as the USA). Trade surplus drives growth and employment; this is generally referred as export-led growth. However, while export-led growth is praised, the negative effects of imports and trade deficits are generally neglected. Trade deficits—in particular those due to ‘unnecessary’ imports—mean less growth and more unemployment for the importing country. As manufacturing constitutes the major part of world exports and imports, this implies that it is vital for growth and employment. This chapter explains these ideas using a facile mathematical framework for the general audience. Like Chap. 5, it forms a basis for why industrial policy is necessary especially in developing countries.
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. © The Editor(s) (if applicable) and The Author(s) 2018. Corrected Publication 2018.
Many confuse industrialization with the construction of factory buildings. In fact, it is primarily a skill accumulation and a capacity-building process with a significant intangible aspect; more than hardware, industrialization resembles software. Successful industrialization is possible if skill accumulation and the capacity-building processes are successful. A key implication is that industrial policy should take this into consideration in order to achieve its targets. Instead of targeting mere construction of factory buildings, industrial policy should focus on the long-term capacity-building process.
This book narrates a wide range of ideas both vertically (historically) and cross-sectionally (ideas, sectors, countries, case studies). This final chapter presents a summary of key takeaways and policy implications.
This chapter sketches the stories of industrialization and industrial policies in different countries, giving support to the motto “industrialization was never an accident.” It looks at the USA, Japan, France, Russia, and Germany. In the USA, the rejection of the British colonial laws hindering industrialization forced the colonies to win their economic and political freedom. In France, policies supporting the manufacturing sector (before the Industrial Revolution in Britain) helped the Industrial Revolution in the country. In Russia, Germany, and Japan also deliberate industrial policies led to industrialization.
Post-medieval colonial empires emerged before the Industrial Revolution. They came in succession, and among them the British Empire formed the cradle of industrialization. This chapter selectively reviews the process, which was untidy and brutal for millions of people. It also discusses some of the commercial tools, such as the joint stock company, that helped Britain (and the Netherlands) to expand.
What is the typical/streamlined process of the industrialization? How can we determine the stage of the industrialization in a country? This is important and determines the profit which the country makes from industrialization. This chapter develops a simple theory of the stages of industrialization and locates different countries on that streamlined process map.
