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Manufacturing Productivity, Deindustrialization, and Reindustrialization

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  • Tregenna, Fiona

Abstract

In considering pathways to industrialization in the twenty-first century, cognisance needs to be taken of the fact that many countries have actually been deindustrializing. This paper analyses deindustrialization experiences internationally, by decomposing changes in the level and share of manufacturing employment. The results indicate that in most countries the decline in manufacturing employment is associated mainly with rising labour productivity in manufacturing. Reindustrialization is likely to be important for long-term economic growth, yet it is difficult and is not common. This highlights the importance of robust industrial policies if countries are to move from deindustrialization to reindustrialization.

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File URL: http://www.wider.unu.edu/stc/repec/pdfs/wp2011/wp2011-057.pdf
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Bibliographic Info

Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Research Paper WP2011/57.

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Length: 24
Date of creation: 2011
Date of revision:
Handle: RePEc:unu:wpaper:wp2011-57

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Keywords: deindustrialization; reindustrialization; manufacturing; employment;

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References

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  1. Jordi Pons-Novell & Elisabet Viladecans-Marsal, 1999. "Kaldor's Laws and Spatial Dependence: Evidence for the European Regions," Regional Studies, Taylor & Francis Journals, vol. 33(5), pages 443-451.
  2. Robert Rowthorn & Ken Coutts, 2004. "De-Industrialization And The Blance Of Payments In Advanced Economies," UNCTAD Discussion Papers 170, United Nations Conference on Trade and Development.
  3. Fiona Tregenna, 2009. "Characterising deindustrialisation: An analysis of changes in manufacturing employment and output internationally," Cambridge Journal of Economics, Oxford University Press, vol. 33(3), pages 433-466, May.
  4. Alejandro Diaz-Bautista, 2004. "Mexico’s Industrial Engine of Growth: Cointegration and Causality," Econometrics 0402010, EconWPA.
  5. Fingleton, B & McCombie, J S L, 1998. "Increasing Returns and Economic Growth: Some Evidence for Manufacturing from the European Union Regions," Oxford Economic Papers, Oxford University Press, vol. 50(1), pages 89-105, January.
  6. R. I. D. Harris & A. Liu, 1999. "Verdoorn's law and increasing returns to scale: country estimates based on the cointegration approach," Applied Economics Letters, Taylor & Francis Journals, vol. 6(1), pages 29-33.
  7. Drakopoulos, Stavros & Theodossiou, Ioannis, 1991. "Kaldorian Approach to Greek Economic Growth," MPRA Paper 48989, University Library of Munich, Germany.
  8. Mark Knell, 2004. "Structure Change and the Kaldor-Verdoorn law in the 1990s," Revue d'Économie Industrielle, Programme National Persée, vol. 105(1), pages 71-83.
  9. Harris, Richard I D & Lau, Eunice, 1998. "Verdoorn's Law and Increasing Returns to Scale in the UK Regions, 1968-91: Some New Estimates Based on the Cointegration Approach," Oxford Economic Papers, Oxford University Press, vol. 50(2), pages 201-19, April.
  10. Miguel Leon-Ledesma, 2000. "Economic Growth and Verdoorn's Law in the Spanish Regions, 1962-91," International Review of Applied Economics, Taylor & Francis Journals, vol. 14(1), pages 55-69.
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Cited by:
  1. Faruk Ülgen, 2013. "Redesigning finance towards job-creating long-term development : some regulatory roots," Post-Print halshs-00957355, HAL.
  2. Neil Dias Karunaratne, 2013. "The mining boom, productivity conundrum and monetary policy design to combat resource curse effects in Australia," Discussion Papers Series 504, School of Economics, University of Queensland, Australia.
  3. Erber, Georg & Hagemann, Harald, 2012. "Wachstums- und Investitionsdynamik in Deutschland," Violette Reihe Arbeitspapiere 36/2012, Promotionsschwerpunkt "Globalisierung und Beschaeftigung".
  4. Szirmai, Adam & Verspagen, Bart, 2011. "Manufacturing and Economic Growth in Developing Countries, 1950-2005," MERIT Working Papers 069, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  5. Hu, Zheng & Hu, Zhaoguang, 2013. "Production function with electricity consumption and its applications," Energy Economics, Elsevier, vol. 39(C), pages 313-321.

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