Industrialization and the Big Push

1989/10/01 by Kevin Murphy, Andrei Shleifer, Robert W. Vishny · 3 citations
Economics, Econometrics and Finance · #Economic theories and models #Economic Theory and Policy #Economic Growth and Productivity #Industrialisation #Economics #Big push model #Context (archaeology) #Relevance (law) #Developing country #Market economy #Economic growth

paper · doi:10.1086/261641

openalex publication_date 1989/10/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/08/05

Abstract

This paper explores Rosenstein-Rodan's idea that simultaneous industrialization of many sectors of the economy can be profitable for them all even when no sector can break even industrializing alone. We analyze this idea in the context of an imperfectly competitive economy with aggregate demand spillovers and interpret the big push into industrialization as a move from a bad to a good equilibrium. We present three mechanisms for generating a big push and discuss their relevance for less developed countries.

Citations

• Increasing Returns and Long-Run Growth
• Problems of Industrialisation of Eastern and South-Eastern Europe

Cited by

• Should Industrial Policy in Developing Countries Conform to Comparative Advantage or Defy it? A Debate Between Justin Lin and Ha‐Joon Chang
• The Olympic Effect
• Economic growth [wikipedia]