A note on premature deindustrialization

Abstract

Industrialization has long been regarded as an engine of economic growth. Indeed, the countries that experienced rapid economic growth in the latter half of 20th century underwent significant economic structural change toward industrialization. In contrast, in the 21st century, latecomers might face difficulty realizing the industrialization required for economic growth because of a phenomenon called ‘premature deindustrialization’ taking place in those countries. This issue of premature deindustrialization, if it holds true, raises important questions, such as what its mechanism is, what its effects are, and what the alternative strategies for economic growth are. This paper, as a steppingstone to consider these issues, uses expanded samples to examine and confirm the occurrence of premature deindustrialization.