{ "title": "Deindustrialization: Causes and Implications", "publication": "IMF Working Papers, April 1, 1997", "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/deindustrialization-causes-and-implications-2161", "canonical": "https://www.imf.org/en/publications/wp/issues/2016/12/30/deindustrialization-causes-and-implications-2161", "overlayPath": "/en/publications/wp/issues/2016/12/30/deindustrialization-causes-and-implications-2161/index.md", "summary": "All advanced economies have experienced a secular decline in the share of manufacturing employment—a phenomenon referred to as deindustrialization.", "sections": [ { "heading": "Main argument", "content": "- All advanced economies have experienced a secular decline in the share of manufacturing employment (deindustrialization).\n- Deindustrialization is argued not to be a negative phenomenon but the natural consequence of the industrial dynamism in an already developed economy.\n- North-South trade has had very little to do with deindustrialization.\n- The paper discusses the implications of deindustrialization for the growth prospects and the nature of labor market arrangements in the advanced economies." }, { "heading": "Key findings and analysis", "content": "- Deindustrialization is a widespread, secular trend across advanced economies marked by declining manufacturing employment shares.\n- The phenomenon reflects structural change driven by industrial dynamism within developed economies rather than external trade pressures.\n- North-South trade is assessed as having very little causal role in deindustrialization.\n- The analysis links sectoral shifts (manufacturing to services) to productivity dynamics and employment-share changes in advanced economies." }, { "heading": "Implications for growth prospects", "content": "- Deindustrialization has consequences for the growth prospects of advanced economies that are explored in the paper.\n- The transition from manufacturing to services affects aggregate productivity dynamics and thus long-run growth potential.\n- The paper examines how the process of deindustrialization interacts with productivity effects and the services sector’s evolving role." }, { "heading": "Implications for labor market arrangements", "content": "- Deindustrialization influences the nature of labor market arrangements in advanced economies.\n- Changes in employment composition (manufacturing to services employment and services sector share) have implications for employment policy and labor market institutions.\n- The paper discusses how labor market policies and arrangements may need to adapt in response to structural employment shifts." }, { "heading": "Subjects and keywords emphasized", "content": "- Subjects: Economic sectors, Employment, International trade, Labor, Manufacturing, Production, Productivity, Services sector, Trade balance.\n- Keywords include: current price, deindustrialization, deindustrialization phase, East Asia, economy, Employment, employment share, Europe, Manufacturing, North-South trade, process of deindustrialization, Productivity, productivity effect, service sector, services employment, Services sector, share, Trade balance, WP.\n\nIMF Working Paper No. 1997/042 (38 pages), DOI https://doi.org/10.5089/9781451975826.001\n\n---\n\n Content in this bundle\n\n- Deindustrialization: Causes and Implications - Wp/97/42\n - Deindustrialization: Causes and Implications - Wp/97/42 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - Deindustrialization: Causes and Implications - Wp/97/42 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/deindustrialization-causes-and-implications-2161" } ], "bullets": [ "[Markdown version](/en/publications/wp/issues/2016/12/30/deindustrialization-causes-and-implications-2161/index.md)", "[Structured JSON version](/en/publications/wp/issues/2016/12/30/deindustrialization-causes-and-implications-2161/index.json)", "[Bundle manifest](/en/publications/wp/issues/2016/12/30/deindustrialization-causes-and-implications-2161/bundle-manifest.json)", "Authors: Ramana Ramaswamy, Bob Rowthorn", "Published: April 1, 1997", "Series: IMF Working Papers", "DOI: https://doi.org/10.5089/9781451975826.001", "All advanced economies have experienced a secular decline in the share of manufacturing employment (deindustrialization).", "Deindustrialization is argued not to be a negative phenomenon but the natural consequence of the industrial dynamism in an already developed economy.", "North-South trade has had very little to do with deindustrialization.", "The paper discusses the implications of deindustrialization for the growth prospects and the nature of labor market arrangements in the advanced economies.", "Deindustrialization is a widespread, secular trend across advanced economies marked by declining manufacturing employment shares.", "The phenomenon reflects structural change driven by industrial dynamism within developed economies rather than external trade pressures.", "North-South trade is assessed as having very little causal role in deindustrialization.", "The analysis links sectoral shifts (manufacturing to services) to productivity dynamics and employment-share changes in advanced economies.", "Deindustrialization has consequences for the growth prospects of advanced economies that are explored in the paper.", "The transition from manufacturing to services affects aggregate productivity dynamics and thus long-run growth potential.", "The paper examines how the process of deindustrialization interacts with productivity effects and the services sector’s evolving role.", "Deindustrialization influences the nature of labor market arrangements in advanced economies.", "Changes in employment composition (manufacturing to services employment and services sector share) have implications for employment policy and labor market institutions.", "The paper discusses how labor market policies and arrangements may need to adapt in response to structural employment shifts.", "Subjects: Economic sectors, Employment, International trade, Labor, Manufacturing, Production, Productivity, Services sector, Trade balance.", "Keywords include: current price, deindustrialization, deindustrialization phase, East Asia, economy, Employment, employment share, Europe, Manufacturing, North-South trade, process of deindustrialization, Productivity, productivity effect, service sector, services employment, Services sector, share, Trade balance, WP.", "**Deindustrialization: Causes and Implications - 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