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JSPES, Vol. 47, No. 3-4 (Fall-Winter 2022)
pp. 324-332

Industrialization Is Not the Solution for Creating Wealth

Jorge Sá
Ana Lúcia Luís
Instituto Superior de Gestăo (ISG), Portugal

Many economists argue that industrialisation is the key to wealth creation, especially in more developed countries. However, this relationship is not direct and wealth and economic growth depend on other factors, such as the type of activities generated within the economic sectors that will impact the degree of value-added generation. In fact, the current paper demonstrates that industrialisation per se is not a key to wealth creation nor the source of economic growth, even when variables such as quality and/or delivery, or, in the case of price, when activity is carried out with such a degree of efficiency that high productivity levels compensate for low sale price.