Drivers of manufacturing structural change and employment generation

This section first looks at what drives the structural change and industrial development analysed above. The drivers’ interactions are extremely diverse, complex and non-linear but what stands out is that costs, as well as technological and demand conditions, remain crucial. In principle, structural change in any sector in any country is governed by the conditions of demand and supply for products and services that interact with each other. Supply-side conditions generally include wages, skills, technological change, firm size, location of production facilities and the overall business environment, which also determine industry’s competitiveness and organization. Demand-side conditions include demand for imports and exports as well as foreign direct investment.

Sustainable Development Goals:

Decent Work and Economic Growth

Industry, Innovation and Infrastructure