Input Chains and Industrialization

UPF Economics and Business Working Paper No. 498

34 Pages Posted: 24 Nov 2000

See all articles by Antonio Ciccone

Antonio Ciccone

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences; Centre for Economic Policy Research (CEPR); Institute for the Study of Labor (IZA)

Date Written: November 2000

Abstract

A key aspect of industrialization is the adoption of increasing-returns-to-scale, industrial, technologies. Two other, well-documented aspects are that industrial technologies are adopted throughout intermediate-input chains and that they use intermediate inputs intensively relative to the technologies they replace. These features of industrial technologies combined imply that countries with access to similar technologies may have very different levels of industrialization and income, even if the degree of increasing returns to scale at the firm level is relatively small. Furthermore, a small improvement in the productivity of industrial technologies can trigger full-scale industrialization and a large increase in income.

Keywords: intermediate inputs, input chains, industrialization, aggregate-income differences

JEL Classification: O11, O14, O21

Suggested Citation

Ciccone, Antonio, Input Chains and Industrialization (November 2000). UPF Economics and Business Working Paper No. 498. Available at SSRN: https://ssrn.com/abstract=243767 or http://dx.doi.org/10.2139/ssrn.243767

Antonio Ciccone (Contact Author)

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences ( email )

Ramon Trias Fargas 25-27
Barcelona, 08005
Spain
+34 93 542 1669 (Phone)
+34 93 542 1746 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

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