A HISTORICAL PATTERN OF ECONOMIC GROWTH IN DEVELOPING COUNTRIES

Abstract

THE DEVELOPING ECONOMIES in consequence, there was a conspicuous change from consumer goods to capital goods in the import structure.The sixth stage is the period when manufactured goods in general began to be produced by native industries, whether the raw materials were domestically available or not.The capital goods required by these industries were imported at the expense of the induction of foreign capital̲.and of the export of primary products,The seventh stage is the period when the industrialization of the developing countries became so advanced as to make possible the export of manufactured consumer goods, and when the domestic production of some capital goods gradually came to the fore.These stages, however, overlap each other and cannot be clearly classified nor applied to every developing country in Asia.For instance, J pan has attained the position of an advanced country in comparison with other Asian countries.She has attained a stage higher than the seventh stage.India and China can be said to have partially reached the seventh stage.The other countries, however, have not yet developed to the stage of capital goods production. Development in Connection with Heterogeneous Economic Interrelation.For the classification of the above-mentioned stages with respect to the interrelation between an advanced economy and a less-advanced economy, we can call the stages from the frst to the third the period of differentiation of economic structures into advanced and less-advanced.* Albert O. Hirschman.The Strategy of Economic Development, (New Haven : Yale University Press, 1958) p. 120.In this book the author stresses the important role of imports in causing the industrialization of developing countries.