Deindustrialization: Causes and Implications
April 1, 1997
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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.
Subject: Economic sectors, Employment, International trade, Labor, Manufacturing, Production, Productivity, Services sector, Trade balance
Keywords: 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
Pages:
38
Volume:
1997
DOI:
Issue:
042
Series:
Working Paper No. 1997/042
Stock No:
WPIEA0421997
ISBN:
9781451975826
ISSN:
1018-5941
