Urbanisation in India is taking many twists and turns. Organised manufacturing is moving out of urban areas, while unorganised manufacturing is transitioning towards urban areas. As the fourth greatest energy consumer in the world, how the country manages this ongoing industrialisation and urbanisation process will have important environmental implications. This column looks at the relationship between growth, geography, and energy efficiency in manufacturing in India. Electricity consumption per unit of output has declined in urban and rural areas, but these overall trends mask substantial variation between states and substantial potential for further efficiency improvements in energy-intensive industries.
Ejaz Ghani, Arti Grover Goswami, William Kerr, Wednesday, November 18, 2015 - 00:00
Jayant Menon, Thiam Hee Ng, Thursday, October 1, 2015 - 00:00
Malaysia’s fortunes have taken a turn for the worse in recent years, both in manufacturing and across the economy in general. This column argues that the country is moving back to processing its agricultural and mineral resources, and that such ‘premature deindustrialisation’ is mostly policy driven. The biggest concern with such structural shifts is that they lead to low-productivity, low-wage manufacturing. Malaysia must address these issues and improve its business environment if it wants to realise its aspirations.
Toshihiro Okubo, Yukako Ono, Yukiko Umeno Saito, Friday, September 4, 2015 - 00:00
The productivity of a firm depends on its interaction with its suppliers and customers. This column uses unique data from Japan to investigate the wholesalers’ role in transaction networks, considering both sides of the transaction. The likelihood that a firm uses wholesalers increases with smaller buyer-side firms and larger seller-side firms. In addition, wholesalers tend to be located closer to their manufacturing buyers and further from their manufacturing sellers than manufacturers are to their direct manufacturing partners.
Nicholas Crafts, Alex Klein, Thursday, July 30, 2015 - 00:00
There is increasing evidence that cities offer externalities that raise labour productivity. This column looks at the contribution of US cities to productivity growth at the turn of last century. The findings show that increased specialisation, promoted by improved transportation, was the key to productivity growth. Today’s policymakers should heed this lesson.
Johan Hombert, Adrien Matray, Saturday, July 11, 2015 - 00:00
The rise of China has been identified as a major source of disruption for the manufacturing sector in high-income economies. This column argues that innovation helps firms to escape import competition from low-wage countries. It uses variation in R&D tax credits across years and US states to show that firms' R&D capital stock has a causal effect on their resilience to trade shocks.
Petr Matous, Yasuyuki Todo, Tuesday, June 16, 2015 - 00:00
Japanese business groups, or keiretsu – cartels of companies with interlocking interests – have contributed much to the success of Japanese manufacturing in the 20th century. This column explores the future of this form of corporate governance, amid increasing calls for their dissolution. An examination of trade networks in the automotive industry shows that automakers no longer exhibit a preference for dealing with keiretsu partners. Globalisation, procurement scandals, and advances in modularisation have helped to erode the benefits of these long-term relationships.
Ejaz Ghani, William Kerr, Alex Segura, Tuesday, June 9, 2015 - 00:00
The vast informal sector in India affects everything from poverty to growth. This column presents new facts on how Indian job growth in manufacturing is concentrated in informal tradable industries, especially one-person establishments. These features are most closely linked to the urbanisation of informal Indian manufacturing, but subcontracting and rising female participation also appear to play noteworthy roles.
Catherine Hausman, Ryan Kellogg, Friday, May 15, 2015 - 00:00
The economic and environmental impacts of the US fracking boom are hotly debated. This column argues that there’s been a large positive impact on the US economy, estimating that the benefits to producers and consumers totalled $48 billion in 2013, or around one-third of 1% of US GDP. The climate change impacts have been large, but they do not outweigh the private gains. However, a lack of data on the impacts to water, air, and seismic activity hamper policymakers effectively targeting the areas of greatest concern and hamper them drawing up effective regulation.
Uri Dadush, Friday, March 13, 2015 - 00:00
Samuel Marden, Sunday, December 28, 2014 - 00:00
Kozo Kiyota, Thursday, November 27, 2014 - 00:00
Daron Acemoglu, David Autor, David Dorn, Gordon H. Hanson, Brendan Price, Sunday, September 28, 2014 - 00:00
Giuseppe Berlingieri, Thursday, September 25, 2014 - 00:00
Arik Levinson, Wednesday, September 24, 2014 - 00:00
Benedicta Marzinotto, Alessandro Turrini, Friday, September 5, 2014 - 00:00
Oya Celasun, Gabriel Di Bella, Tim Mahedy, Chris Papageorgiou, Monday, February 24, 2014 - 00:00
The strong rebound of manufacturing production following the Great Recession of 2008–09 has generated renewed interest in the sector among analysts and policymakers. This column argues that a detailed look at the data suggests that claims of a US manufacturing renaissance are unwarranted. Yet, there remain factors that could support a greater contribution from the manufacturing sector to overall US growth in the years ahead.
Leonardo Iacovone, Aaditya Mattoo, Andrés Zahler, Sunday, September 15, 2013 - 00:00
Service exports and innovation may be a source of dynamic growth for countries in the middle-income trap. This column presents new research showing some support for this optimistic view. That said, it’s clear that researchers need to improve their understanding of how firms in the services sector innovate and increase productivity, and whether better-tailored policies can promote trade and innovation in services.
Richard Dobbs, Friday, February 8, 2013 - 00:00
Surprisingly, manufacturing in some advanced economies is experiencing something of a renaissance. This column argues that the renaissance will unfold in new, unexpected ways. Manufacturing value added will continue to rise, but the impact on jobs will be muted – particularly for the unskilled. A range of innovations has opened a once-in-a-generation opportunity to build new platforms, but better skills and new strategies will be needed.
Klaus Desmet, Ejaz Ghani, Stephen D O'Connell, Esteban Rossi-Hansberg , Wednesday, June 13, 2012 - 00:00
Will India’s rapid growth in the services sector lead to overcrowding of its cities? This column compares India’s experience to that of other countries.
Ejaz Ghani, Monday, January 23, 2012 - 00:00
Mention China and India to economists and their first thought will be rapid growth. Their second thought might be how differently the two economies are achieving this: China through manufacturing, India through services. This column asks whether that stereotype may be changing.