Globalization,Industrialization and Economic Catch-Up

Industrialization is essential for economic development in early developed countries. Since the 1990 s,however,many developing countries have experienced premature deindustrialization,indicated by decline in the shares of manufacturing employment and value-added. We argue that international economic structural transformation and technological progresses under globalization make it more difficult to pursue industrialization in traditional ways,but they create new opportunities for developing countries. In particular,China’s rising economic presence has significant impact on industrial development in developing countries. Examining the relations between China-Africa trade and African industrial development, we find that Chinese competition did not cause deindustrialization in Africa. Instead, China-Africa trade has facilitated African industrial development on the whole, but its impact differs across the African continent. We also suggest that developing export-oriented manufacturing is not the only choice for African countries. Implementing various targeted industrial policy is important not only for Africa’s sustainable development,but also for a stable international order.