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A new theoretical analysis of deindustrialisation

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  • Fiona Tregenna

Abstract

The analysis of deindustrialisation has been led by heterodox economists, especially those in the structuralist and Kaldorian traditions, based on a conception of sectoral specificity and the role of manufacturing in growth. Sectors are not the units of Marxian economic analysis, but thinking through the meaning of sectors in Marxian terms allows for an analysis of the meaning and implications of a change in sectoral structure. Deindustrialisation is the sectoral shift that has been most prominent in recent decades and which is likely to have significant implications for the future of capitalism. This article develops an original Marxian theorisation of deindustrialisation. This conceptualisation includes a distinction between two forms of deindustrialisation. As well as taking into account changes in sectoral structure, the proposed typology considers whether such changes are associated with a shift between those activities that produce surplus value and those that do not or only a shift in the composition of surplus-value-producing activities. The distinction between different forms of deindustrialisation allows for an arguably richer analysis of this phenomenon than in more narrowly sector-based approaches.

Suggested Citation

  • Fiona Tregenna, 2014. "A new theoretical analysis of deindustrialisation," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 38(6), pages 1373-1390.
    • Handle: RePEc:oup:cambje:v:38:y:2014:i:6:p:1373-1390.
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    File URL: http://hdl.handle.net/10.1093/cje/bet029
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    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. Tuncer, İsmail & WAFEK MOALLA, Maya, 2020. "Structural Change and Growth Prospects in the Turkish Manufacturing Industry," Bulletin of Economic Theory and Analysis, BETA Journals, vol. 5(1), pages 1-19, June.
    3. Liboreiro, Pablo R. & Fernández, Rafael & García, Clara, 2021. "The drivers of deindustrialization in advanced economies: A hierarchical structural decomposition analysis," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 138-152.
    4. Di Tommaso, Marco R. & Tassinari, Mattia & Barbieri, Elisa & Marozzi, Marco, 2020. "Selective industrial policy and ‘sustainable’ structural change. Discussing the political economy of sectoral priorities in the US," Structural Change and Economic Dynamics, Elsevier, vol. 54(C), pages 309-323.
    5. Lábaj, Martin & Majzlíková, Erika, 2023. "How nearshoring reshapes global deindustrialization," Economics Letters, Elsevier, vol. 230(C).
    6. Palma, J. G., 2019. "Why is inequality so unequal across the world? Part 2 The diversity of inequality in market income - and the increasing asymmetry between the distribution of income before and after taxes and transfer," Cambridge Working Papers in Economics 19100, Faculty of Economics, University of Cambridge.
    7. Callaghan, Christian William, 2021. "Consequences of deindustrialisation for globalisation: Insights for international business," International Business Review, Elsevier, vol. 30(3).

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