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Globalization and deindustrialization in advanced countries

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  • van Neuss, Leif

Abstract

A strand of empirical research on deindustrialization seeks to quantify the relative importance of the economic forces behind deindustrialization, and especially of the internal and external factors, i.e. those linked to globalization and trade. The results of this literature are highly fragile, arguably because the commonly used indicators of trade are not well defined to capture the contribution of globalization to deindustrialization. While this empirical study does not necessarily contradict the widespread belief that the internal factors are quantitatively more important in accounting for deindustrialization in the OECD taken as a whole, our empirical results – based on panel data for 15 OECD advanced countries from 1970 to 2006 – nevertheless show that global exchanges have the potential to affect significantly and substantially a country’s sectoral patterns of employment. They also suggest that the contribution of globalization, and especially of growing North-South integration, to deindustrialization in advanced countries may be revised upwards when resorting to better-suited indicators of trade.

Suggested Citation

  • van Neuss, Leif, 2018. "Globalization and deindustrialization in advanced countries," Structural Change and Economic Dynamics, Elsevier, vol. 45(C), pages 49-63.
  • Handle: RePEc:eee:streco:v:45:y:2018:i:c:p:49-63
    DOI: 10.1016/j.strueco.2018.02.002
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    Cited by:

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    2. Teimouri, Sheida & Zietz, Joachim, 2020. "Coping with deindustrialization: A panel study for early OECD countries," Structural Change and Economic Dynamics, Elsevier, vol. 54(C), pages 26-41.
    3. Jia, Fei & Ma, Xiuying & Xu, Xiangyun & Xie, Lijuan, 2020. "The differential role of manufacturing and non-manufacturing TFP growth in economic growth," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 174-183.
    4. Walter Paternesi Meloni & Antonella Stirati, 2021. "What has driven the delinking of wages from productivity? A political economy-based investigation for high-income economies," Working Papers PKWP2104, Post Keynesian Economics Society (PKES).
    5. Callaghan, Christian William, 2021. "Consequences of deindustrialisation for globalisation: Insights for international business," International Business Review, Elsevier, vol. 30(3).
    6. Niftiyev, Ibrahim, 2020. "The De-industrialization Process In Azerbaijan: Dutch Disease Syndrome Revisited," EconStor Conference Papers 227485, ZBW - Leibniz Information Centre for Economics.

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    More about this item

    Keywords

    Structural change; Deindustrialization; Manufacturing; Globalization; Trade;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • F1 - International Economics - - Trade
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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