Scandinavian Working Papers in Economics

SSE/EFI Working Paper Series in Economics and Finance,
Stockholm School of Economics

No 46: Rural Industrialization: A Review of Selected Asian Experiences

Sara Johansson and Per Ronnås
Additional contact information
Sara Johansson: Dept. of Economics, Stockholm School of Economics, Postal: Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden
Per Ronnås: Dept. of Economics, Stockholm School of Economics, Postal: Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden

Abstract: In many developing countries rural industrialization is increasingly perceived to offer an escape from the predicament of diminishing returns to labour in agriculture on the one hand and low employment elasticity in large-scale manufacturing on the other hand. The present study explores the economic, institutional, social and other factors which have proved instrumental/detrimental to a healthy development of rural industries in four Asian economies; Taiwan, China, Vietnam and Thailand. In the concluding section of the study the main ingredients of success are distinguished and the nature of their influence on rural industrial development is discussed.

Keywords: Industrialization; rural development; Asia

JEL-codes: L1; O14; O18; O53; O57

111 pages, February 1995

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