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What Drives Industrialization in Developing Countries?: Globalization and Manufacturing Employment in 90 Developing countries, 1980-2003

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Abstract:

This study investigates the effect of the latest wave of economic globalization on manufacturing employment in developing countries. It revisits the classic debate on the effect of external influences on industrialization in developing countries in the wake of recent changes in the global economy. It also aims to build a general model of industrialization in developing countries. This study uses a comprehensive dataset on developing countries, covering 90 developing countries between 1980 and 2003. The results show that manufacturing employment in developing countries follows a reverse U-shaped trend. In the models, this is best predicted by the level of economic development, measured by GDP per capita and GDP per capita squared. Also, the size of total exports and the share of low-technology exports in all exports show a positive effect on manufacturing employment; while direct investment flows out of developing countries have a negative effect. Thus, economic globalization also affects manufacturing employment in developing countries. Finally, the results provide limited support for the dependency and world systems schools. The share of raw material exports in all exports and foreign direct investment inflows show some negative effect on manufacturing employment.

Most Common Document Word Stems:

countri (243), develop (159), model (155), manufactur (123), employ (113), fdi (111), effect (107), industri (104), export (100), global (88), gdp (84), econom (66), signific (65), world (65), variabl (59), stock (51), economi (47), increas (46), standard (39), communist (38), product (37),

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globalization, development, labor, industrialization, deindustrialization
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Kaya, Yunus. "What Drives Industrialization in Developing Countries?: Globalization and Manufacturing Employment in 90 Developing countries, 1980-2003" Paper presented at the annual meeting of the American Sociological Association, Montreal Convention Center, Montreal, Quebec, Canada, Aug 10, 2006 Online <PDF>. 2008-08-16 <http://www.allacademic.com/meta/p103718_index.html>

APA Citation:

Kaya, Y. (2006, Aug) "What Drives Industrialization in Developing Countries?: Globalization and Manufacturing Employment in 90 Developing countries, 1980-2003" Paper presented at the annual meeting of the American Sociological Association, Montreal Convention Center, Montreal, Quebec, Canada Online <PDF> Retrieved 2008-08-16 from http://www.allacademic.com/meta/p103718_index.html

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: This study investigates the effect of the latest wave of economic globalization on manufacturing employment in developing countries. It revisits the classic debate on the effect of external influences on industrialization in developing countries in the wake of recent changes in the global economy. It also aims to build a general model of industrialization in developing countries. This study uses a comprehensive dataset on developing countries, covering 90 developing countries between 1980 and 2003. The results show that manufacturing employment in developing countries follows a reverse U-shaped trend. In the models, this is best predicted by the level of economic development, measured by GDP per capita and GDP per capita squared. Also, the size of total exports and the share of low-technology exports in all exports show a positive effect on manufacturing employment; while direct investment flows out of developing countries have a negative effect. Thus, economic globalization also affects manufacturing employment in developing countries. Finally, the results provide limited support for the dependency and world systems schools. The share of raw material exports in all exports and foreign direct investment inflows show some negative effect on manufacturing employment.

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Document Type: PDF
Page count: 46
Word count: 12355
Text sample:
WHAT DRIVES INDUSTRIALIZATION IN DEVELOPING COUNTRIES?: GLOBALIZATION AND MANUFACTURING EMPLOYMENT IN 90 DEVELOPING COUNTRIES 1980-2003* Yunus Kaya Duke University January 18 2006 Word Count: 9 949 (excluding Tables & Appendices) * I thank David Brady and Gary Gereffi for suggestions. Please direct correspondence to Yunus Kaya Department of Sociology Box 90088 Duke University Durham NC 27708 email: ykaya@soc.duke.edu. Abstract This study investigates the effect of the latest wave of economic globalization on manufacturing employment in developing countries. It revisits
45 Appendix IV: Inward FDI Stock and Manufacturing Employment in All Countries and Ex-Communist Countries 45.00 40.00 35.00 30.00 25.00 (%) 20.00 15.00 10.00 5.00 0.00 1980 1985 1990 1995 2000 2003 Year FDI Stock (All countries) FDI Stock (Ex-Communist) Manufacturing Employment (All countries) Manufacturing Employment (Ex-Communist) 46


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