Background paper

Structural Transformation and Growth without Industrialisation

Gollin, D. 2018. Structural transformation without industrialization. Pathways for Prosperity Commission Background Paper Series; no. 2. Oxford. United Kingdom

There is a commonly held belief in the centrality for manufacturing in developing countries’ paths from poverty to prosperity. This paper argues that the narrative of industrialisation and manufacturing as a necessary ladder to economic growth is not supported by empirical evidence. The paper concludes that there is no reasonable why, with the right sets of enabling policies, services or agriculture could not become important ladders to economic growth in developing countries.