Open Economies Review

, Volume 26, Issue 1, pp 1–37 | Cite as

The Spread of Manufacturing to the Poor Periphery 1870–2007

  • Agustín S. Bénétrix
  • Kevin Hjortshøj O’Rourke
  • Jeffrey G. Williamson
Research Article

Abstract

This paper documents industrial output growth around the poor periphery (Latin America, the European periphery, the Middle East and North Africa, Asia, and sub-Saharan Africa) between 1870 and 2007. We find that although the roots of rapid peripheral industrialization stretch into the late 19th century, the high point of peripheral industrialization was the 1950–1973 period, which saw widespread import-substituting industrialization. This period was also the high point of unconditional industrial catching up, defined as the tendency of less industrialized countries to post higher per capita manufacturing growth rates, and which occurred between 1920 and 1990.

Keywords

Third world industrialization History 

JEL Classification

N6 N1 F63 O2 

Notes

Acknowledgments

The research leading to these results has received funding from the European Research Council under the European Union's Seventh Framework Programme (FP7/2007-2013)/ERC grant agreement no. 249546. For help with collecting the data, we are grateful to Alberto Baffigi, Ivan Berend, Luis Bértola, Steve Broadberry, Albert Carreras, Myung So Cha, Roberto Cortés Conde, Alan de Bromhead, Niamh Devitt, Rafa Dobado, Giovanni Federico, David Greasley, Ola Grytten, Gregg Huff, Elise Huillery, Martin Ivanov, Isao Kamata, Duol Kim, John Komlos, Toru Kubo, Pedro Lains, John Lampe, Sibylle Lehmann, Carol Leonard, Debin Ma, Graciela Marquéz, Matthias Morys, Aldo Musacchio, Noel Maurer, Ian McLean, Branko Milanovic, Steve Morgan, José Antonio Ocampo, Roger Owen, Les Oxley, Şevket Pamuk, Dwight Perkins, Guido Porto, Leandro Prados de la Escosura, Tom Rawski, Jim Robinson, Max Schulze, Martin Shanahan, Alan Taylor, Pierre van der Eng, Ulrich Woitek, and Vera Zamagni. We are also grateful for the comments from Michael Clemens, and participants at the UW Development Seminar (May 10 2012), the Trade and History conference (Madrid May 17, 2012), the WEHC session on Industrialization (Stellenbosch July 11 2012), and the Arndt-Corden Seminar (ANU December 11 2012). The usual disclaimer applies.

References

  1. Abramovitz M (1986) Catching Up, Forging Ahead, and Falling Behind. J Econ Hist 46(2):385–406CrossRefGoogle Scholar
  2. Allen RC (2009) The British Industrial Revolution in Global Perspective. Cambridge University Press, CambridgeCrossRefGoogle Scholar
  3. Bairoch P (1982) International Industrialization Levels from 1750 to 1980. Journal of European Economic History 11(Fall):269–333Google Scholar
  4. Barro RJ (1997) Determinants of Economic Growth: A Cross-Country Empirical Study. MIT Press), CambridgeGoogle Scholar
  5. Bloom D, Williamson JG (1998) Demographic Transitions and Economic Miracles in Emerging Asia. World Bank Econ Rev 12(September):419–55CrossRefGoogle Scholar
  6. Bloom, D. and D. Canning (2001) Cumulative causality, economic growth, and the demographic transition. in N. Birdsall, A. C. Kelley and S. W. Sinding (eds.), population matters: demographic change, economic growth, and poverty in the developing world (Oxford: Oxford University Press)Google Scholar
  7. Bourguinon F, Morrisson C (2002) Inequality among. World Citizens: 1820–1992, American Economic Review 92 4(September):727–44Google Scholar
  8. Clemens, Williamson JG (2004) Why did the Tariff-Growth Correlation Change After 1950? J Econ Growth 9, 1(November):5–46CrossRefGoogle Scholar
  9. Coatsworth J, Williamson JG (2004) Always Protectionist? Latin American Tariffs from Independence to Great Depression. Journal of Latin American Studies 36 2(May):205–32CrossRefGoogle Scholar
  10. Crafts NFR (1985) British Economic Growth During the Industrial Revolution. Oxford University Press, OxfordGoogle Scholar
  11. Durlauf, S., P. Johnson, and J. Temple (2005) Growth econometrics. In P. Aghion and S. Durlauf (eds.), Handbook of Economic Growth (Amsterdam: North-Holland)Google Scholar
  12. Flandreau M, Le Cacheux J, Zumer F (1998) Stability without a Pact? Lessons from the European Gold Standard, 1880–1914. Economic Policy 13 26(April):115–162Google Scholar
  13. Lee R, Mason A (2010) Fertility, Human Capital, and Economic Growth over the Demographic Transition. Eur J Popul 26(2):159–82CrossRefGoogle Scholar
  14. Lewis WA (1978) The Evolution of the International Economic Order. Princeton University Press, PrincetonGoogle Scholar
  15. Lucas RE (2000) Some Macroeconomics for the 21st Century. Journal of Economic Perspectives 14 1(Winter):159–68CrossRefGoogle Scholar
  16. Maddison, A. (2010) Statistics on World Population, GDP and Per Capita GDP, 1–2008 AD, http://www.ggdc.net/MADDISON/oriindex.htm
  17. Prebisch, R. (1950) The economic development of latin america and its principal problems, Lake Success, NY: United Nations, Department of Economic Affairs, 1950Google Scholar
  18. Robertson DH (1938) The Future of International Trade. Economic Journal 48 189(March):1–14Google Scholar
  19. Rodrik D (2013a) Unconditional Convergence in Manufacturing. Q J Econ 128:165–204CrossRefGoogle Scholar
  20. Rodrik, D. (2013b) The Past, present, and future of economic growth, Global Citizen Foundation Working Paper 1, Global Citizen Foundation (June)Google Scholar
  21. Singer HW (1950) The Distribution of Gains between Investing and Borrowing Countries. Am Econ Rev 40(1950):473–85Google Scholar
  22. Smits, J.-P., P. Woltjer, and D. Ma (2009) A Dataset on Comparative Historical National Accounts, ca. 1870–1950: A Time-Series Perspective, Groningen Growth and Development Centre Research Memorandum GD-107, Groningen: University of Groningen. http://www.rug.nl/feb/Onderzoek/Onderzoekscentra/GGDC/data/hna
  23. Temin, P. (2002) The golden age of european growth reconsidered, 6 (1): 3–22Google Scholar
  24. Williamson, J. G. (2006) Explaining World Tariffs 1870–1938: Stolper-Samuelson, strategic tariffs and state revenues, in R. Findlay, R. Henriksson, H. Lindgren and M. Lundahl (Eds.), Eli Heckscher, 1879–1952: A celebratory symposium (Cambridge, Mass.: MIT Press)Google Scholar
  25. Williamson, J. G. (2010) When, Where, and Why? Early industrialization in the poor periphery 1870–1940, NBER Working Paper 16344, National Bureau of Economic Research, Cambridge, Mass. (September).Google Scholar
  26. Williamson JG (2011a) Trade and Poverty: When the Third World Fell Behind. MIT Press, CambridgeCrossRefGoogle Scholar
  27. Williamson JG (2011b) Industrial Catching Up in the Third World 1870–1975, NBER Working Paper 16809. National Bureau of Economic Research, CambridgeGoogle Scholar
  28. Wright G (1990) The Origins of American Industrial Success, 1879-1940. Am Econ Rev 80(September):651–68Google Scholar

Copyright information

© Springer Science+Business Media New York 2014

Authors and Affiliations

  • Agustín S. Bénétrix
    • 1
  • Kevin Hjortshøj O’Rourke
    • 2
  • Jeffrey G. Williamson
    • 3
  1. 1.Trinity College DublinDublinIreland
  2. 2.All Souls CollegeOxfordUK
  3. 3.HarvardWisconsinUSA

Personalised recommendations