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Abstract

In order to achieve sustainable economic growth with equitable income distribution in the face of a rapidly growing population in the developing world, lucrative new job opportunities must be continuously created, particularly for the poor in both urban and rural areas. It has become increasingly clear that the widely adopted, urban-based industrialization strategy has limitations for the creation of new jobs for the poor, because of the adoption of inappropriate technologies biased towards saving unskilled labour. Furthermore, in high-performance Asian economies, such as Thailand and Indonesia, rapid urbanization has resulted in serious congestion, environmental pollution, and a high cost of living in large cities.

I am grateful to Abhijit Banerjee, Yujiro Hayami, Justin Lin, Thomas Rawski, and Tetsushi Sonobe for useful comments on the earlier draft.

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© 1998 International Economic Association

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Otsuka, K., Banerjee, A.V. (1998). Rural Industrialization in East Asia. In: Hayami, Y., Aoki, M. (eds) The Institutional Foundations of East Asian Economic Development. International Economic Association Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-26928-0_14

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