INDUSTRIALISATION AND ECONOMIC DEVELOPMENT

Abstract

Industrial development has been a major factor in the economic development. Even in the newly independent developing countries, industrialisation has been assigned an important role in the development programmes. The reasons are obvious. The development of industry brings with it a relative easy access to modern technology which is highly capital intensive and is conducive to base for rapid industrial development. The spill over effects of industrialisation which result from the sophisticated intermediate inputs and capital goods, contribute to growth in all sectors of the economy. Industrialisation, thus serves the role of a catalyst that converts agriculture, construction, transport and other service industries into highly productive sectors, hence may be regarded as a fundamental component of economic development¹