Conceptual | Comment

What is 'premature deindustrialisation' in economics?

This refers to a phenomenon wherein the growth of an economy’s manufacturing sector begins to slow down prematurely in its path towards development. Economists generally picture economic development as a process by which labour and other resources gradually move from agriculture to the manufacturing sector before these resources move to the services sector at higher stages of development. Some economies, however, may witness a premature movement of resources to the services sector, thus leading to underdevelopment of the manufacturing sector. The concept was popularised in 2015 by Turkish economist Dani Rodrik.

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Printable version | Mar 8, 2021 7:46:44 AM | https://www.thehindu.com/opinion/op-ed/what-is-premature-deindustrialisation-in-economics/article25290325.ece

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