What is ‘premature deindustrialisation’ in economics?

  • This refers to a phenomenon wherein the growth of an economy’s manufacturing sector begins to slow down prematurely in its path towards development.
  • Economists generally picture economic development as a process by which labour and other resources gradually move from agriculture to the manufacturing sector before these resources move to the services sector at higher stages of development.
  • Some economies, however, may witness a premature movement of resources to the services sector, thus leading to underdevelopment of the manufacturing sector. The concept was popularised in 2015 by Turkish economist Dani Rodrik.


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