Industrial Interior


Scheme description

At the beginning of industrialization, consumer goods industry (light industry) dominated. Reasons: First, industries such as food and textile are the sectors that meet people's most basic needs. Only when the basic needs are met, can more resources be invested in other industries. Second, capital, technology and skilled labor were scarce and unskilled labor was abundant (factor endowment) in the early stage of industrialization, which was conducive to the development of consumer goods industry but not conducive to the development of capital goods industry.

In the middle and late period of industrialization, the proportion of capital goods industry (heavy industry) increased significantly, that is, heavy industrialization. Reasons: One is that the consumer goods industry can develop continuously only under the condition that the capital goods industry develops continuously. Second, the long-term development of consumer goods industry has no development momentum.