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On the Welfare Costs of Premature Deindustrialization (Inglés)

Developing countries are deindustrializing at earlier stages of development than experienced by advanced economies. Is this trend symptomatic of inefficiency? If so, what are the welfare costs? This paper proposes a definition of premature deindustrialization based on whether the pace of deindustrialization diverges from the one implied by a theoretical benchmark of efficient sectoral allocation. It identifies 10 episodes of premature deindustrialization...
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