Industrial production

Value for the economy

As economist Danios Rodrik noted in 2017, industrial production has some specific features that make it the most important driver of economic development.

Firstly, industrial production is a technologically dynamic sector. A feature of the industrial sector is the convergence of labor productivity, regardless of any barriers (politics, business climate, etc.). The same state of the art automobile plant will be almost equally productive in the United States and Zimbabwe.

Secondly, industrial production has traditionally absorbed a significant share of unskilled labor, unlike other high-performance sectors, such as the financial sector or mining. As John Rockefeller said, "the best business in the world is a well-run oil company. In second place is a poorly managed oil company. " The problem is that you will not create many jobs in this sector, only for your own.

Thirdly, industrial production is a traded sector, its products can be exported, which removes restrictions on demand in poor countries. What cannot be said about the service sector, which is mainly non-tradable and stubborn in the absence of solvent demand in developing countries: you cannot open many coffee shops, barbershops and boutiques in Zimbabwe. Industry, on the other hand, can develop and absorb labor, even if the rest of the economy remains technologically primitive. And pull the latter by the ears^[1].

Industrial production in Russia

Main article: Industrial production in Russia

Industrial production in Belarus

Main article: Industrial production in Belarus

Segments

• Pulp and Paper Industry

Notes