Mar 16, 2012

Leading Dragons

. . . [I]ndustrial upgrading has increased wages and is causing China to graduate from labor-intensive to more capital- and technology-intensive industries. These industries will shed labor and create a huge opportunity for lower wage countries to start a phase of labor-intensive industrialization. This process, called the Leading Dragon Phenomenon, offers an unprecedented opportunity to low-income Sub-Saharan Africa where the industrial sector is underdeveloped and investment capital and entrepreneurial skills are leading constraints to manufacturing.

That is form the new paper "Leading Dragons Phenomenon: New Opportunities for Catch-Up in Low-Income Countries" by Chandra, Lin, and Wang (March 2012).

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