dunnettreader + manufacturing + emerging_markets   2

Matias Vernengo NAKED KEYNESIANISM: Manufacturing matters - Jan 2013
Chart of distribution of manufacturing capacity over the centuries pre and post Industrial Revolution from Robert Allen -- Note that the West, narrowly defined as England the rest of Western Europe, what was to become the US and Russia (called for the whole period USSR) had a share of less than 20% in 1750, it had expanded to more than 80% on the eve of WW-I. If you add Australia, Canada and Latin America (which are all in Rest of the World, but are what Maddison would call Western offshoots), the numbers are even larger. Most of the changes were associated to the squeeze of China. And most of the recent changes are associated with expansion of China and East Asia (which includes Japan). We have not gone full circle, by the way. In other words, the process of development (or indutrialization in the center) went hand in hand with the process of underdevelopment (deindustrialization) in the periphery, and old lesson from a little book by Osvaldo Sunkel which is still worth reading. [1972 study of Latin American development and underdevelopment from 1750, tracking exports, FDI etc]
economic_history  economic_theory  economic_growth  development  emerging_markets  Latin_America  Great_Divergence  China  India  Industrial_Revolution  industrialization  manufacturing  exports  British_history  capitalism  18thC  19thC 
september 2014 by dunnettreader
Prakash Loungani and Saurabh Mishra - Not Your Father's Service Sector -- Finance & Development, June 2014
A long-standing truism in California’s Silicon Valley is that “70 percent of hardware is software”—early recognition of the link between sales of computers and software services. It is a phenomenon that now extends beyond the computer industry. Services have become the glue that binds many manufacturing supply chains. ...Recognizing this interdependence, companies are shifting from “selling products to selling an integrated combination of products and services that deliver value,” a development that the academic literature refers to as the “servitization of manufacturing” .... Companies are more open today to the incorporation of products and services from other vendors if it helps them establish and maintain a relationship with their customers. To reap the benefits of these trends, even developing economies where manufacturing still looms large must develop state-of-the-art services. Such services are needed for manufacturing firms to connect to global value chains and develop competitiveness in more skill-intensive activities along the value chain. Some countries may be able to use their comparative advantage in labor costs to become exporters of some intermediate or final service products. In others, services may pose lower barriers to entry than capital-intensive industries or offer an easier route to employment for women than other available options. Countries such as Malaysia could take advantage of the globalization of services to escape a potential middle-income trap.
global_economy  supply_chains  services  trade  emerging_markets  globalization  manufacturing  exports  women-work 
june 2014 by dunnettreader

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