National Industrial Structure and the Global System

Kenneth A. Bollen
University of North Carolina at Chapel Hill
Stephen J. Appold
Carnegie Mellon University (then)

Various forms of participation in the global system have been held to distort the structure of industrialization in developing countries, diminishing labor absorption in that sector from what might be expected for the level of industrialization observed.  Operationalizing Kuznets' theoretical definition of industrialization with indicators of energy consumption per capita, percentage of the labor force in industry, and percentage of GDP that originates in industry, we test several predictions about the effect of involvement in the global system on the structure of industrialization.  We first construct and estimate a measurement model that has these basic indicators influenced by the latent variable of industrialization.  Elaborations of the basic model allow the influence of the world system on the structure of industrialization to be measured.  Import and export composition affect the structure of industrialization; position in the world system and foreign direct investment have no net direct effects.  A Marxist-Leninist regime shows independent influence on the structure of industrialization in some years.  We estimate the model with 1970 data and replicate it in 1965, 1980 and 1986; partial replications are performed for 1960 and 1975.

American Sociological Review 58:283-301 (1993)

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