ABSTRACT

Historically, the industrial sector has been the most dynamic force contributing to structural change in the economic and social system. The new demand for various industrial inputs links the industrial sector with other economic activities, and the income generated may contribute to changes in the pattern and level of demand for a variety of products. The real growth rate of the tertiary sector is normally between the rates of the primary and secondary sectors in the developing countries. Growth patterns in the manufacturing sector may differ widely among the various heterogeneous branches, leading to changes in the industrial structure of this sector. The non-uniform growth among these sectors resulted in a change in the industrial structure in favour of capital and intermediate goods. The variations are caused not only by differences in the stage of industrialization, but also by differences in the size of the countries involved and in their natural resource endowments.