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Development and DistributionStructural Change in South East Asia$
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Andy Sumner

Print publication date: 2018

Print ISBN-13: 9780198792369

Published to Oxford Scholarship Online: July 2018

DOI: 10.1093/oso/9780198792369.001.0001

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Structural Transformation and Inclusive Growth

Structural Transformation and Inclusive Growth

Theory and Heterogeneity

(p.44) 3 Structural Transformation and Inclusive Growth
Development and Distribution

Andy Sumner

Oxford University Press

This chapter reviews currents in theory with a focus on modernization and neoclassical statements of comparative advantage on the one hand, and structuralism, dependency, and other theories of underdevelopment on the other. The latter theories of underdevelopment hit their zenith in the policies of the import-substitution industrialization of the 1960s and 1970s. They were largely dismissed in the 1980s as the limits of import-substitution industrialization became apparent and as East Asia industrialized, undermining any argument that structural transformation was problematic in the periphery. This chapter theorizes that neither orthodox nor heterodox theories of structural transformation adequately explain the development of late developers because of the heterogeneity of contemporary capitalism. That said, heterodox theories, which coalesce around the nature of incorporation of developing countries into the global economy, do retain conceptual usefulness in their focal point, ‘developmentalism’, by which we mean the deliberate attempts at national development led by the state.

Keywords:   Inequality, structural change, poverty, Malaysia, Indonesia, Thailand, South East Asia

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