Sie sind auf Seite 1von 26

INDUSTRIALIZATION

AND
STRUCTURAL
CHANGE
Industrialization is that the
economy is transformed from
agricultural to one based on the
manufacturing of goods, it ofte
replace the individual manual labor
to a mechanized mass production
Model of Structural Change
•Interaction between a traditional agricultural sector
and a modern industrial sector

•surplus labor

• productivity of labor increases

• lower average wage when the land is flooded with


labor

• balance of these two sector


Exports are critical in explaining
productivity gains in the Asian economies.
Internal competition does not seem to be
sufficient to bring about high rates of
productivity increase.
Indonesia has not been able to make the transition to
higher value added products that are in demand in the
OECD countries as quickly and effectively as its
neighbors in southeast asia because of these reasons

• They still has large oil and natural gas sector and
some of its resources are devoted to maintaining and
expanding this sector
• it had a late start in the industrialization process
• it has a labor force that lacks education and training
to implement technology in these new industry
• their strategy to leapfrog to higher levels of
technology is not successful and it further held back
the transition to labor intensive industries
The asian experience with industrializaton

The growth rate of east asian economies of


Hongkong, Korea, Taiwan and Singapore the Asian
“Tigers” or Newly industrialized economies is
unprecedented in economic history their per capita
incomes increased by 7% per year
There is an argument that both the capital
stock and the labor force grew rapidly, combined
with good government policies is the reason that the
asian miracle happened, but there are other
countries that have this combination but didn’t
experienced this rapid growth rate. Economists have
argued that the use of growth accounting formulas
are flawed.
Primary commodities accounted for a large share of
total outputs and exports in Asia while
manufactured commodities generally played a
supporting role. The structure of manufacturing
was slanted toward labor intensive products and
geared for the domestic market
The electronic Sector

In structural transformation in the


industrial sector of Newly industrialized
economies electronics industry had become
the most important export
Patterns of technological transfers

The methods varied from economy to


economy, some economies are open to foreign
direct investment like Singapore and Hong kong
and some economies like korea and taiwan who
were less open and did not encourage foreign firms
to set up operations but they adopted
arrangements where local subsidiaries producedfor
the foreign company either OEM or ODM
Country Experiences
Singapore
Singapore followed a model of attracting foreign
enterprises and TNCs are attracted by low labor
costs, political stability, good infrastructure and
attractive government provided by governement
and in early 1990’s there are already more than 300
TNCs in singapore. To provide low cost and high
quality labor force economic development board
supported technical training, including engineering
and technical schools, because of the infrastructure
that put in place Singapore became a high
technology testing ground for hard disk drivers
Korea

Korea became the leader in chip industry and


develop the capability to produce household
appliances and became one of the leaders in chip
production worldwide
TNCs are not welcome in korea they took
place under OEM and moved slowly to ODM. There
was a increase in research and development
investment as the industrialization process continued
Taiwan

Taiwan used the same approach as korea in terms


of discouraging TNCs but instead of developing
large conglomerates taiwan focused in small and
medium sized industries. Eventually some of
these small medium sized firms became larger and
they moved toward OBM or own brand
manufacturing
Malaysia and thailand followed the pattern of
singapore where they welcomed TNCs.
Malaysia’s major part of total exports and
manufacturing output are electronics but
despite the rapid progress malaysia’s research
and development remains weak and the
electronic industry is sensitive to global swings
in demand.
Philippines and Thailand

the two countries has been on lower level and


simple electronics and followed the model that
relying on TNCs for technology transfer and
production know how.
Comparative advantage and Asian industrialization

Products that are being exported more intensively


are those that are the country has a comparative
advantage next is if the mix of industries in japan
and United states be taken as benchmark for
comparative advantage
The role of innovation
Innovation is a creative process of
abandoning old ways of doing things an the
adaptation of new methods and process.

Countries beginning industrialization


need an entirely different sets of policies for
education and technology transfer compared
with those economies at a more advanced
level.
Without the combination of technology
education openness and competitiveness such rapid
growth would not have been possible but “if the
technology changes too fast then those who fall
behind can get lost” “the way for these countries to
move forward and a way to access this technlogy is
through FDI
Countries beginning industrialization need
an entirely different set of policies for education
and technology transfer
Rural – Urban Migration

• migration happens when the expected future


income in the city exceeds the expected income in
rural areas
• limited opportunities in rural areas
•if the agricultural wages are equal with the
average wages of formal and informal sector.
• Migrants usually move to places where they have
friends or relatives
•Lastly the social stigma that they need to succeed
in life before returning to their hometown that
stigma holds down the migrants in the urban areas.
Intraregional and international labor
when an economy experienced labor shortages
the shortage could appear more often in unskilled
occupation and there will be in and out migration.
The cause of labor migration are low domestic
earning and underemployment and also to provide
remittance income for their family.
Immigration in all the high income countries
in asian region has been controlled and very selective
to avoid large flow of illegal workers.
Industrial sector growth was nurtured in
many ways through the indirect effects of
government policy if industial policy were not
followed industrial growth will be slower.

Das könnte Ihnen auch gefallen