From: The Big Nowhere
To put it in a more understandable way:
If you increase your industry too much, it will reqiure more resources than you can possibly supply. So in the end, too big of an increase = total crash of the economy.
Engines = base on what you need and expand very slowly
aircraft = expand a bit, but don't over do it, each frame costs 18 times the number of engines. H6K for example costs you 72 HI each plane. You will have to increase some of them, just be very careful.
Refineries = I don't expand these, you will capture big refineries in the DEI and you can transport fuel in AKs and Oil in your TKs.
Shipyards = Increase Naval, leave Merchant alone (or even convert a couple of small merchants to naval).
Repair Shipyards = Increase the one at Tokyo to 100...you won't be able to convert the CS types to CVLs if you don't. And more repair is always a good thing.
HI = very little if any increase
Light Industry = NEVER, EVER INCREASE OR REPAIR THESE. You can't turn them off (after the latest official patch) and each LI point sucks up 15 resource points.
Distant Worlds Fan
'When in doubt...attack!'