Deindustrialization : Causes and Implications

Author/Editor:

Ramana Ramaswamy ; Bob Rowthorn

Publication Date:

April 1, 1997

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

All advanced economies have experienced a secular decline in the share of manufacturing employment—a phenomenon referred to as deindustrialization. This paper argues that, contrary to popular perceptions, deindustrialization is not a negative phenomenon, but is the natural consequence of the industrial dynamism in an already developed economy, and that North-South trade has had very little to do with deindustrialization. The paper also discusses the implications of deindustrialization for the growth prospects and the nature of labor market arrangements in the advanced economies.

Series:

Working Paper No. 97/42

Subject:

English

Publication Date:

April 1, 1997

ISBN/ISSN:

9781451975826/1018-5941

Stock No:

WPIEA0421997

Format:

Paper

Pages:

38

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