Industrial production

Value for economy

As the economist Dani Rodrik noted in 2017, industrial production has some peculiar features doing by its major driver of economic development.

First, industrial production — technology dynamic sector. Feature of the industrial sector is convergence of labor productivity irrespectively of any barriers (policy, business climate, etc.). The same state of the art automobile works will be almost equally productive both in the USA, and in Zimbabwe.

Secondly, industrial production traditionally absorbed a considerable share of unqualified labor power, unlike other high-performance sectors, for example the financial sector or mineral extraction. As John Rockefeller spoke, "the best in the world business is a well managed oil company. On the second place — badly managed oil company". The problem is that you will not create many jobs in this sector only for .

Thirdly, industrial production — the traded sector, its products can be exported that lifts limits from demand in the poor countries. What you will not tell about the service industry which is generally not traded and resting for lack of solvent demand in developing countries: it is a lot of coffee shops, you will not open barbershops and boutiques in Zimbabwe. The industry can develop and absorb labor power even if other economy remains technology primitive. And to extend the last for ears^[1].

Industrial production in Russia

Main article: Industrial production in Russia

Notes