(1968) found structural change was slower among countries rich in natural
resources (they included Venezuela, Malaysia and Iraq in their sample). This
effect was only pronounced in countries with GDP less than $1, 000 per capita.
Table 8.2 shows some interesting sub-stories within the general industrial-
ization picture. The share of industry in GDP tends to be higher in richer devel-
oping countries, such as Argentina or Brazil, than in Chad, Ghana or Kenya.
Countries that had adopted a communist/socialist economic model (Hungary
and China here) tended to have extremely high shares of industry in GDP by
1980, as this type of economic system placed great emphasis on promoting
industry through extensive state intervention. The highest-income countries,
such as Denmark, Japan, Germany and the UK have all experienced sustained
deindustrialization since 1980 (a declining share of GDP accounted for by
industry). Countries in Latin America, such as Argentina and Brazil, experi-
enced very sharp falls in the industry share after around 1980, associated with
the profound economic crisis in the region during the subsequent decade.
The rapid industrialization of South Korea after 1960 was driven not by the
changing pattern of consumer demand as suggested by the basic theory
described above, but rather by state intervention. After the 1961 coup of
General (subsequently President) Park the overwhelming priority of the
government was to expand exports, particularly of industrial goods. Large
firms were assigned orders (politely called targets) by Ministry officials. If
they succeeded they gained various tax and credit benefits and easier/cheaper
Economic Growth and Economic Structure since 1750 173Table 8.2 Industry’s share of GDP in selected Asian, African and
Latin American countries, 1960, 1980, 2000 and 2010Country Industry, value added as a % of GDP
1960 1980 2000 2010Argentina 41.2 27.6 30.9
Bangladesh 20.6 25.3 28.5
Botswana 13.4 50.7 52.6 45.0
Brazil 37.1 43.8 27.7 28.1
Chad 9.5 8.9 11.3
China 44.9 48.2 45.9 46.7
Denmark 27.2 26.8 21.8
Germany 41.1 30.5 27.9
Ghana 12.3 28.4 19.1
Hungary 59.0 47.1 32.4 31.0
India 19.3 24.3 26.1 27.6
Japan 39.0 31.1 27.4
Kenya 18.2 20.8 16.9 18.6
South Korea 18.6 36.6 38.1 38.8
United Kingdom 40.7 27.3 21.6Source: Data compiled from World Development Indicators(2013).