CHINESE ECONOMIC EXPANSION AND THE MANUFACTURING SECTOR IN THE MENA REGION

18/11/2016 15:00
Turkey

The term deindustrialization is used to define the decline in the share of manufacturing as an economy reaches to a high income level. The worldwide shift of manufacturing to China is shown as one of the determinants of the acceleration of the deindustrialization in industrialized countries. It is also argued that Chinese economic expansion leads to a premature deindustrialization in developing countries. The economies in the MENA region display different paths in the development of their manufacturing sectors. We found that the MENA countries covered in the paper are on the increasing segment of the Kuznets curve. The results reveal that openness, natural resources and economic expansion of China can be listed as the factors which affect the manufacturing success in the MENA region. 

*: Joint work with Fatma Dogruel.