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Industrial development and economic growth: Implications ...
295 Industrial development and economic growth : Implications for poverty reduction and incomeinequalityMatleena Kniivil *1. IntroductionThe share of poor people in the global population has declined during recentdecades. According to Chen and Ravallion (2004), one-third of the popula-tion of the world lived in poverty in 1981, whereas the share was 18 per centin 2001. The decline is largely due to rapid economic growth in population-rich countries like China and India. There are, however, remarkable differ-ences between countries and between regions in the developing world.
Industrial development and economic growth 297 remain unchanged (see e.g. Arrow 1962). As R&D activities in developing countries are relatively limited and countries are far from the technological
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