Analysis of factors determining premature de-industrialization: An application on developing countries

Industrialization has an important share in the scope of the sectoral development model. The increase in the industrial sector accelerates the economic growth rate. With the process of economic development, sectoral changes occur in society. Colin Clark states that it is inevitable that sectors will shift from one sector to another as nations industrialize. With economic development, those employed in agriculture, compared to the industrial sector; Those employed in the industrial sector tend to decrease compared to the service sector. In line with the studies in the literature, this situation is seen mostly in underdeveloped and developing countries. This is called Deindustrialization. Data on production added value and the shares of sectors in GDP are evaluated in this study. Annual data covering the dates 1990-2022 are used in the study. When we look at the country groups, we have seen 4 different groups. Groups including Latin America, Asia, Sub-Saharan Africa and European countries consist of underdeveloped and developing countries. According to the results of the analysis using the Panel Quantile Regression method, it is seen that the countries have entered a process of early deindustrialization. In this regard, the main purpose of the thesis is to question this claim.