Possibilities of Growth, Decent Jobs and Poverty Reduction without Industrialisation: Application of Discrete-Time Markov Process

Abstract

The paper aimed to examine the possibilities of growth, decent jobs, and poverty reduction without industrialisation. The study uses secondary data from 23 countries sampled randomly from developing and developed countries. The discrete-times Markov process was used. The study found that a country such as Mongolia has higher industrial growth but less state transition probability. The study found that the G7 and G20 countries such as Canada, Germany, the USA, Australia, India and Mexico have less industrial growth, resulting in the unpredictability of the growth, decent job creation and poverty eradication. The study concludes that the growth of industrialisation does not grant for growth, decent job creation and poverty eradication, but the industrial structure, policies and location with be determined by such effects. Therefore, the paper recommends using the discrete-Time Markov process to predict the economic growth in developed and developing countries.