DP2523 Industrial Employment, Investment Equipment and Economic Growth
|Publication Date:||August 2000|
|Keyword(s):||Economic Development, Equipment Investment, Industrial Employment, Labour Intensive Technology|
|JEL(s):||O14, O30, O57|
|Programme Areas:||International Macroeconomics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=2523|
The industrialization of labour is the main engine of growth during the early stages of economic development. In less developed countries, equipment investment has played a less important role than non-equipment investment; and it has only proved growth enhancing when it either encountered a substantial industrial labour force or fostered a large increase in the share of industrial employment. These findings draw attention to the effects of investment on the composition of the labour force; and unlike recent claims emphasizing industrialization via equipment investment, they suggest that employment industrialization policies may hold the key to success in the LDC world.