On the Welfare Costs of Premature Deindustrialization

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.

Bibliographic Details

Main Author:	Fattal Jaef, Roberto N.
Format:	Working Paper biblioteca
Language:	English English
Published:	World Bank, Washington, DC 2023-03
Subjects:	PREMATURE DEINDUSTRIALIZATION, INEFFICIENCY, WELFARE COSTS, EFFICIENT SECTORAL ALLOCATION, ALLOCATION OF RESOURCES, SERVICE SECTOR,
Online Access:	http://documents.worldbank.org/curated/en/099333003072358323/IDU034de5b2804a2e043c70b7c8013c71527bc07 https://openknowledge.worldbank.org/handle/10986/39519
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