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Deindustrialization

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  • Ramana Ramaswamy
  • Bob Rowthorn
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    Abstract

    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.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 97/42.

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    Length: 38
    Date of creation: 01 Apr 1997
    Date of revision:
    Handle: RePEc:imf:imfwpa:97/42

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    Cited by:
    1. Jochen Hartwig, 2008. "Has health capital formation cured ‘Baumol’s Disease’? – Panel Granger causality evidence for OECD countries," KOF Working papers 08-206, KOF Swiss Economic Institute, ETH Zurich.
    2. Mihkel Laan, 2003. "Industrial restructuring in transitional Baltic Sea Region countries (Baltic States, Kaliningrad oblast)," ERSA conference papers ersa03p505, European Regional Science Association.
    3. Jan J. Rutkowski & Stefano Scarpetta, 2005. "Enhancing Job Opportunities : Eastern Europe and the Former Soviet Union," World Bank Publications, The World Bank, number 7408, October.
    4. Klodt, Henning, 2004. "Strukturwandel und Arbeitsmarktprobleme in Deutschland," Open Access Publications from Kiel Institute for the World Economy 3372, Kiel Institute for the World Economy (IfW).
    5. Nicholas Oulton, 2000. "Must the growth rate decline? Baumol's unbalanced growth revisited," Bank of England working papers 107, Bank of England.
    6. Sasaki, Hiroaki, 2007. "The rise of service employment and its impact on aggregate productivity growth," Structural Change and Economic Dynamics, Elsevier, vol. 18(4), pages 438-459, December.
    7. Dodzin, Sergei & Vamvakidis, Athanasios, 2004. "Trade and industrialization in developing economies," Journal of Development Economics, Elsevier, vol. 75(1), pages 319-328, October.
    8. Blum, Bernardo S., 2008. "Trade, technology, and the rise of the service sector: The effects on US wage inequality," Journal of International Economics, Elsevier, vol. 74(2), pages 441-458, March.
    9. Mauricio Mesquita Moreira, 2006. "Fear of China : is there a future for manufacturing in Latin America ?," INTAL Working Papers 1278, Inter-American Development Bank, INTAL.
    10. Tonus, Özgür, 2007. "Gümrük Birliği sonrasında Türkiye'de dışa açıklık ve sanayileşme
      [Openness and industrialization in Turkey after the Customs Union]
      ," MPRA Paper 7121, University Library of Munich, Germany.
    11. S. Montresor & G. Vittucci Marzetti, 2008. "The deindustrialisation/tertiarisation hypothesis reconsidered: a subsystem application to the OECD7," Working Papers 622, Dipartimento Scienze Economiche, Universita' di Bologna.
    12. Groot, H.L.F. de, 1998. "The Determination and Development of Sectoral Structure," Discussion Paper 1998-125, Tilburg University, Center for Economic Research.
    13. Lavopa, Alejandro & Szirmai, Adam, 2012. "Industrialization, employment and poverty," MERIT Working Papers 081, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    14. Grömling, Michael, 2005. "Sinn und Unsinn von Quoten auf Basis von preisbereinigten Werten," Thuenen-Series of Applied Economic Theory 50, University of Rostock, Institute of Economics.
    15. Berthold, Norbert & Stettes, Oliver, 2000. "Globalisierung und Strukturwandel - droht das Ende des Sozialstaates," Wirtschaftswissenschaftliche Beiträge 35, Julius-Maximilians-Universität Würzburg, Lehrstuhl für Volkswirtschaftslehre, insbes. Wirtschaftsordnung und Sozialpolitik.
    16. Kurose, Kazuhiro, 2009. "The relation between the speed of demand saturation and the dynamism of the labour market," Structural Change and Economic Dynamics, Elsevier, vol. 20(2), pages 151-159, June.

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