Local demand, investment multipliers, and industrialization: Theory and application to the Guatemalan highlands

• 成果类型: Article
• 署名作者: Fafchamps, M; Helms, B
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/0304-3878(95)00053-4
• 发表日期: 1996
• 页码: 61-92
• 关键词: Industrialization; multiple equilibria; rural industries; Rural development; location externalities; Small enterprises; central America

摘要

This paper investigates the role of demand in rural industrialization. We show that, when increasing returns are present, investment multipliers and multiple equilibria can result from demand for intermediate inputs and non-homothetic preferences, We then examine small-scale industrialization in the Guatemalan highlands. We find large differences in the extent and variety of non-farm production across municipalities and evidence of large entry and transportation costs. But the pattern of non-farm production does not fully conform to investment multipliers. We conclude that urbanization favors the emergence of specialized firms and that the export of non-farm products is important for industrialization.