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Analysis
Industrialization is the process by which an economy is transformed from
primarily agricultural to one based on the manufacturing of goods. Individual
manual labor is often replaced by mechanized mass production, and craftsmen
are replaced by assembly lines. Characteristics of industrialization include
economic growth, more efficient division of labor, and the use of technological
innovation to solve problems as opposed to dependency on conditions outside
human control. Structural change refers to dramatic shift in the way a country,
industry, or market operates, usually brought on by major economic
developments. The key to effect structural change is the dynamism that is
inherent in that system.
Structural change model focuses on the mechanism by which underdeveloped
economies transform their domestic economic structures from a heavy
emphasis on traditional subsistence agriculture to a more modern, more
urbanized and more industrially diverse manufacturing and service economy.
Industry as a leading sector is the main structural development that seperates
a modern high-income economy from a traditional low-income economy is the
rapid development of industrial sector.
Backward Linkage are the secondary affects which growth in an industry has
on its suppliers. Industries that has strong backward linkages have low-value
added and a large input from local suppliers. Forward Linkages tell us how a
product is related as an input into the production of a product at the next stage.
Foreign Trade, exports are critical explaining productivity gains in the asian
economies. Internal conpetition does not seem to be sufficient to bring about
high rates of productivity increase.
Country Experiences, the asian countries have actively developed their
electronics sector although there are differences in theor field of specialization
owing to defferences in the labor force and technological advances.
The Role of Innovation, some mention should ba made about the inportance of
innovation in the industrialization process. We have already noted that
education together with the expansion of the labor force played key roles in
achieving economic growth in the countries of East and Southeast Asia in the
decades of 1970’s, 1980’s and 1990’s. Growth on the labor force alone
contributed about 20 percent of total growth in income.
Rural and Urban Migration, to provide labor for a growing industrial sector, there
has been significant migration from the rural to urban areas where industries
are located. The basic building blocks for a model of uban-rural migration are
already in place. Productivity in the rural sector is low. It is higher in the urbas
sector. Therefore, migration will tale place if markets are complete and
conpetitive, this migration will continue until the marginal products in the two
sectors are equalized.
Conclusion
After the discussion above i have realize that Industrialization and Structural
change has a major role in our economy in a way that it increases productivity,
which enable production of a large variety of products and service economically.
And in return it leads for improved standards of living for the entire society or
the economy and resulted in large scale production of goods which are available
to the consumer at much cheaper rates. There is saving of time and labor.
Industrialization has resulted in a considerable rise in the standard of living of
the people.