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The manufacturing–services dynamic in economic development
Author(s) -
KUCERA David,
RONCOLATO Leanne
Publication year - 2016
Publication title -
international labour review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.433
H-Index - 46
eISSN - 1564-913X
pISSN - 0020-7780
DOI - 10.1111/j.1564-913x.2015.00052.x
Subject(s) - lagging , latin americans , productivity , economics , empirical research , developing country , business , economic growth , industrial organization , political science , medicine , philosophy , epistemology , pathology , law
This article addresses the debate on services‐led growth in which services are variously portrayed as a substitute for or as a leading or lagging complement to manufacturing. Following a survey of related empirical studies, it applies growth decomposition methods to data for 18 countries in Asia and Latin America for 1980–2005, focusing on manufacturing and services that make intensive use of information and communication technology. By grouping the countries into four categories according to aggregate labour productivity and employment growth, the authors seek to identify common structural characteristics of better and worse performing countries. They also consider the viability of the services‐led growth path in India in particular.