Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/202516
Authors: 
Daway, Sarah Lynne S.
Ducanes, Geoffrey M.
Fabella, Raul V.
Year of Publication: 
2017
Series/Report no.: 
UPSE Discussion Paper No. 2017-08
Abstract: 
There has been a growing conversation about the revival of Manufacturing to push back growing inequality and reduce poverty. We discuss the pathways by which a higher share of the Manufacturing sector in GDP may bring about lower poverty incidence while a higher share of Services may have the opposite effect. We first compare the poverty reduction experiences of the Philippines whose growth has been largely Services-led in the last two decades with that of China and Vietnam, whose growth have, for the most part, been Manufacturing-led. We then present evidence based on cross-country panel data for low income countries that the Manufacturing share in GDP exhibits a significant negative association with poverty incidence while the higher Services share exhibits a significant positive association with poverty incidence. Low income countries seeking more inclusive growth may do better if they privilege their Manufacturing sector over the Services sector.
Subjects: 
quality of growth
low income countries
poverty incidence
industrial structure
manufacturing
services
JEL: 
O14
I3
O5
Document Type: 
Working Paper

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