IDEAS home Printed from https://ideas.repec.org/a/sls/ipmsls/v22y20113.html
   My bibliography  Save this article

The Myths and Reality of Deindustrialization in Sweden: The Role of Productivity

Author

Listed:
  • Daniel Lind

Abstract

This article analyzes three possible hypotheses behind deindustrialization in Sweden. The main conclusion is that deindustrialization is both a myth and a reality. There has been a decrease in manufacturing employment in both relative and absolute terms in the post-war period, and the share of nominal GDP has gone in the same direction. However, the high productivity growth in manufacturing has lead to an increase in its share of real GDP since the beginning of the 1990's. Using input-output analysis, it is shown that the loss of employed who work with satisfying final demand for manufactured goods is less pronounced than what is shown by official statistics. The explanation for this is a deeper interaction with the rest of the economy, particularly in relation to knowledge-intensive service industries.

Suggested Citation

  • Daniel Lind, 2011. "The Myths and Reality of Deindustrialization in Sweden: The Role of Productivity," International Productivity Monitor, Centre for the Study of Living Standards, vol. 22, pages 29-43, Fall.
    • Handle: RePEc:sls:ipmsls:v:22:y:2011:3
    as

    Download full text from publisher

    File URL: http://www.csls.ca/ipm/22/IPM-22-Lind.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. José A. Camacho & Mercedes Rodriguez, 2007. "Integration and Diffusion of KIS for Industry Performance," Palgrave Macmillan Books, in: Luis Rubalcaba & Henk Kox (ed.), Business Services in European Economic Growth, chapter 7, pages 128-143, Palgrave Macmillan.
    2. Dietzenbacher,Erik & Lahr,Michael L. (ed.), 2004. "Wassily Leontief and Input-Output Economics," Cambridge Books, Cambridge University Press, number 9780521832380.
    3. Robert Rowthorn & Ken Coutts, 2004. "De-industrialisation and the balance of payments in advanced economies," Cambridge Journal of Economics, Oxford University Press, vol. 28(5), pages 767-790, September.
    4. Dirk Pilat & Agnès Cimper & Karsten Bjerring Olsen & Colin Webb, 2006. "The Changing Nature of Manufacturing in OECD Economies," OECD Science, Technology and Industry Working Papers 2006/9, OECD Publishing.
    5. Luis Rubalcaba & Henk Kox (ed.), 2007. "Business Services in European Economic Growth," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-22879-5, December.
    6. Kox, Henk L.M. & Rubalcaba, Luis, 2007. "Business services and the changing structure of European economic growth," MPRA Paper 3750, University Library of Munich, Germany.
    7. Paul Baker, 2007. "The Impact of Business-Services Use on Client Industries: Evidence from Input-Output Data," Palgrave Macmillan Books, in: Luis Rubalcaba & Henk Kox (ed.), Business Services in European Economic Growth, chapter 5, pages 97-115, Palgrave Macmillan.
    8. Luis Rubalcaba, 2007. "Services in European Policies," Bruges European Economic Policy Briefings 16, European Economic Studies Department, College of Europe.
    9. Schettkat, Ronald & Yocarini, Lara, 2003. "The Shift to Services: A Review of the Literature," IZA Discussion Papers 964, Institute of Labor Economics (IZA).
    10. Baumol, William J & Blackman, Sue Anne Batey & Wolff, Edward N, 1985. "Unbalanced Growth Revisited: Asymptotic Stagnancy and New Evidence," American Economic Review, American Economic Association, vol. 75(4), pages 806-817, September.
    11. Mr. Ramana Ramaswamy & Mr. Bob Rowthorn, 1997. "Deindustrialization: Causes and Implications," IMF Working Papers 1997/042, International Monetary Fund.
    12. Luis Rubalcaba & Henk Kox, 2007. "The Growth of European Business Services," Palgrave Macmillan Books, in: Luis Rubalcaba & Henk Kox (ed.), Business Services in European Economic Growth, chapter 1, pages 15-38, Palgrave Macmillan.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cáceres, Luis René, 2017. "Deindustrialization and economic stagnation in El Salvador," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    2. Ali-Yrkkö, Jyrki & Heikkilä, Jussi & Lööf, Hans & Martinsuo, Miia & Mohammadi, Ali & Olhager, Jan & Pajarinen, Mika & Rouvinen, Petri & Tuhkuri, Joonas, . "International Sourcing in Finland and Sweden," ETLA B, The Research Institute of the Finnish Economy, number 275.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Francesco Bogliacino & Matteo Lucchese & Mario Pianta, 2011. "Job creation in business services:Innovation, Demand, Polarisation," Working Papers 1107, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2011.
    2. Davide Castellani & Valentina Meliciani & Loredana Mirra, 2016. "The Determinants of Inward Foreign Direct Investment in Business Services across European Regions," Regional Studies, Taylor & Francis Journals, vol. 50(4), pages 671-691, April.
    3. Rinaldo Evangelista & Matteo Lucchese & Valentina Meliciani, 2013. "The contribution of Business services to the export performances of manufacturing industries. An empirical study on 5 European countries," Working Papers 14, Birkbeck Centre for Innovation Management Research, revised Nov 2013.
    4. Evangelista, Rinaldo & Lucchese, Matteo & Meliciani, Valentina, 2013. "Business services, innovation and sectoral growth," Structural Change and Economic Dynamics, Elsevier, vol. 25(C), pages 119-132.
    5. Kox, Henk L.M. & Rubalcaba, Luis, 2007. "Business services and the changing structure of European economic growth," MPRA Paper 3750, University Library of Munich, Germany.
    6. Kox, Henk L.M. & Leeuwen, George van & Wiel, Henry van der, 2010. "Competitive, but too small - productivity and entry-exit determinants in European business services," MPRA Paper 24389, University Library of Munich, Germany.
    7. Davide Arduini & Antonello Zanfei, 2012. "An overview of existing literature on public e-services," Working Papers 1214, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2012.
    8. Arjan Lejour & Peter Smith, 2008. "International Trade in Services—Editorial Introduction," Journal of Industry, Competition and Trade, Springer, vol. 8(3), pages 169-180, December.
    9. Love, James H. & Roper, Stephen & Bryson, John R., 2011. "Openness, knowledge, innovation and growth in UK business services," Research Policy, Elsevier, vol. 40(10), pages 1438-1452.
    10. Matthias Figo & Peter Mayerhofer, 2015. "Strukturwandel und regionales Wachstum - wissensintensive Unternehmensdienste als Wachstumsmotor?," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 145, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    11. Joanna Wyszkowska-Kuna, 2016. "Financial Services Input as a Source of Economic Growth in the European Union Countries," FindEcon Chapters: Forecasting Financial Markets and Economic Decision-Making, in: Magdalena Osińska (ed.), Statistical Review, vol. 63, 2016, 3, edition 1, volume 63, chapter 3, pages 289-308, University of Lodz.
    12. Bogliacino, Francesco & Lucchese, Matteo & Pianta, Mario, 2013. "Job creation in business services: Innovation, demand, and polarisation," Structural Change and Economic Dynamics, Elsevier, vol. 25(C), pages 95-109.
    13. Davide Arduini & Antonello Zanfei, 2011. "What do we know from the literature on public e-services?," Working Papers 1111, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2011.
    14. Matthias Firgo & Peter Mayerhofer, 2016. "Wissensintensive Unternehmensdienste, Wissens-Spillovers und regionales Wachstum. Teilprojekt 3: Zur Standortstruktur von wissensintensiven Unternehmensdiensten – Fakten, Bestimmungsgründe, regionalpo," WIFO Studies, WIFO, number 59427, Juni.
    15. Andrés Maroto-Sanchez, 2010. "Growth and productivity in the service sector: The state of the art," Working Papers 07/10, Instituto Universitario de Análisis Económico y Social.
    16. Tommaso Ciarli & Valentina Meliciani & Maria Savona, 2012. "Knowledge Dynamics, Structural Change And The Geography Of Business Services," Journal of Economic Surveys, Wiley Blackwell, vol. 26(3), pages 445-467, July.
    17. Peter Mayerhofer & Matthias Firgo, 2015. "Wissensintensive Unternehmensdienste, Wissens-Spillovers und regionales Wachstum. Teilprojekt 2: Strukturwandel und regionales Wachstum – Wissensintensive Unternehmensdienste als "Wachstumsmotor&," WIFO Studies, WIFO, number 58503, Juni.
    18. Gala, Paulo & Camargo, Jhean & Magacho, Guilherme & Rocha, Igor, 2018. "Sophisticated jobs matter for economic complexity: An empirical analysis based on input-output matrices and employment data," Structural Change and Economic Dynamics, Elsevier, vol. 45(C), pages 1-8.
    19. Pim den Hertog & Luis Rubalcaba, 2010. "Policy Frameworks for Service Innovation: A Menu-Approach," Chapters, in: Faïz Gallouj & Faridah Djellal (ed.), The Handbook of Innovation and Services, chapter 26, Edward Elgar Publishing.
    20. Vasile Alecsandru Strat & Adriana AnaMaria Davidescu & Raluca Mariana Grosu & Ion-Daniel Zgura, 2016. "Regional Development Fueled by Entrepreneurial Ventures Providing KIBS – Case Study on Romania," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 18(41), pages 1-55, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sls:ipmsls:v:22:y:2011:3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CSLS (email available below). General contact details of provider: https://edirc.repec.org/data/cslssca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.