Beyond Industrialization: New Approaches to Development Strategy Based on the Service Sector

Full text for this resource is not available from the Research Repository.

Sheehan, Peter (2010) Beyond Industrialization: New Approaches to Development Strategy Based on the Service Sector. In: The Rise of China and India: Impacts, Prospects and Implications. Santos-Paulino, Amelia U and Guang Hua, Wan, eds. Studies in development economics and policy . Palgrave Macmillan, Basingstoke, U.K..


Industrialization occupies a central place in th e rich tapestry of development theory and practice. Although that place has varied over time, many have agreed with Nicholas Kaldor that the kind of economic growth that leads to high real income per capita can only occur through industrialization. This paper argues that it is becoming increasingly difficult for most developing countries to achieve rapid growth through industrialization, and especially through export oriented activities. But the key mechanisms seen as driving the industrial take-off in much of the literature (internal increasing returns, transfer of labour into higher value activities and pecuniary externalities) are alive and well, and are evident in services as well as in industry. Furthermore, China is ac tively trying to move from a strategy based on industrialization to one based much more on agriculture and services, as the costs of the current pattern of industrialization become prohibitive, and India has demonstrated that rapid growth based primarily on the services sector is possible. Thus more attention needs to be given to strategies based on the expansion of the agricultural and services sectors, and to the ways in which better services in rural areas and higher rural output can combine to achieve rapid growth and improved human welfare in poor countries.

Additional Information

Research paper / UNU-WIDER, No. 2008.60

Item type Book Section
Official URL
ISBN 9789292301088
Subjects Historical > FOR Classification > 1402 Applied Economics
Historical > SEO Classification > 9002 Property, Business Support Services and Trade
Historical > Faculty/School/Research Centre/Department > Centre for Strategic Economic Studies (CSES)
Keywords ResPubID20307, industrialisation, services, development strategy, rapid growth, globalisation, economic development, East Asian model, service industry, employment shares, economic growth, manufacturing trade, technology, competition, developing countries, China, India
Download/View statistics View download statistics for this item

Search Google Scholar

Repository staff login