Industrial Development Report 2009

Breaking In and Moving Up - New Industrial Challenges for the Bottom Billion and the Middle-Income Countries

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The report discusses the opportunities and constraints faced by two groups of countries: the countries of the bottom billion trying to break into global markets for manufactured goods, and the middle-income countries that are striving to move up to more sophisticated manufacturing. It focuses predominantly on manufacturing, but also discusses resource extraction, which is the other major type of industrialization in developing countries.



Understanding structural change: Products, tasks and natural resources

This chapter examines how three aspects of industrial structure in developing countries influence their opportunities for growth. Firstly, it looks at two important elements of the industrial structure related to products: diversity and sophistication. Recent research suggests that more advanced economies have more diverse industrial sectors, and economies that export more sophisticated products—in terms of technology, organization, quality, design and logistics—grow faster. The chapter presents new evidence that diversity and product sophistication in manufacturing are closely linked to faster economic growth in both low- and middle-income countries.


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