On the Welfare Costs of Premature Deindustrialization

• Tác giả: Roberto N Fattal Jaef
• Ngôn ngữ: eng
• Ký hiệu phân loại: 330.15 Schools of economic thought
• Thông tin xuất bản: World Bank, Washington, DC, 2023
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 310230
• Chủ đề: 1. ALLOCATION OF RESOURCES; 2. EFFICIENT SECTORAL ALLOCATION; 3. INEFFICIENCY; 4. PREMATURE DEINDUSTRIALIZATION; 5. WELFARE COSTS

Tóm tắt

Developing countries are deindustrializing at earlier stages of development than experienced by advanced economies. Is this trend symptomatic of inefficiency If so, what are the welfare costs This paper proposes a definition of premature deindustrialization based on whether the pace of deindustrialization diverges from the one implied by a theoretical benchmark of efficient sectoral allocation. It identifies 10 episodes of premature deindustrialization, carrying negligible welfare costs, below 1 percent of aggregate consumption.