__smbhome.uscs.susx.ac.uk_tb263_Desktop_DI MEGLIO ET AL SERVICES IN DEVELOPIING ECONOMIES- THE DEINDUSTRIALISATION DEBATE IN PERSPECTIVE.pdf (484.9 kB)
Services in developing economies: The de-industrialization debate in perspective
journal contribution
posted on 2023-06-09, 12:09 authored by Gisela Di Meglio, Jorge Gallego, Andres Maroto, Maria SavonaMaria SavonaThe article adds to the debate around the ‘premature deindustrialization’ of developing countries by analyzing the contribution of services to aggregate productivity and output growth within a Kaldorian framework. We revisit Kaldor´s Growth Laws (KGL) and empirically test them for a number of economic activities, including four service branches, across twenty-nine developing economies in Asia, Latin-America and Sub-Saharan Africa over three decades (1975-2005). Panel data estimations are complemented by a shift-share decomposition of labour productivity growth. We find support to the Kaldorian argument for both manufacturing and business services contribution to aggregate productivity growth. Conversely, other services slow down aggregate productivity and output growth. We suggest qualifying and repositioning the debate on premature deindustrialization within a broader reflection on the opportunities for development linked to structural change. We claim that these opportunities might include not only manufacturing sectors but also business services.
Funding
ISIGrowth: Innovation-fuelled, Sustainable, Inclusive Growth; G1610; EUROPEAN UNION; 649186
History
Publication status
- Published
File Version
- Accepted version
Journal
Development and ChangeISSN
0012-155XPublisher
WileyExternal DOI
Issue
6Volume
49Page range
1495-1525Department affiliated with
- SPRU - Science Policy Research Unit Publications
Full text available
- Yes
Peer reviewed?
- Yes
Legacy Posted Date
2018-02-14First Open Access (FOA) Date
2020-08-30First Compliant Deposit (FCD) Date
2018-02-14Usage metrics
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