Trade and Industrialization in Developing Agricultural Economies
41 Pages Posted: 15 Feb 2006
Date Written: October 1999
Abstract
This paper examines the impact of international trade on industrialization in developing agricultural economies. The findings show that developing agricultural economies that increased their openness during 1970-95 experienced an increase in their share of industrial production at the expense of agricultural production. This is in contrast to what many policymakers in these economies have often argued when trying to promote industrialization by restricting trade. The paper presents an infant industry model with learning effects from imports of manufacturing products that is consistent with the supporting empirical results.
Keywords: economic integration industrialization
JEL Classification: F150 0140
Suggested Citation: Suggested Citation
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