Issues and Country Experiences
Edited by Jesus Felipe
Chapter 4: Capability building and industrial diversification
Structural change, the transformation of a country’s productive structure, has historically been a slow process. This process is what ultimately development is about. For this reason, countries need to nurture it using a variety of policies to deal with the different dimensions of development. Particularly important in this respect is the accumulation of capabilities. These differ across economies depending on whether they need knowledge in simple operational and production areas or have to assimilate advanced technologies. This chapter argues that latecomer countries should implement capability-based industrial policies as they develop and recommends strategies to build capabilities at the various stages of economic development. In particular, developing countries must enhance their capabilities to produce and sell products in international markets to earn foreign currency to pay for imports of investment goods. The challenge is how to increase capabilities, an area of increasing interest in the development and academic communities.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.