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

  • Daniel Lind

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    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.

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    File URL: http://www.csls.ca/ipm/22/IPM-22-Lind.pdf
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    Article provided by Centre for the Study of Living Standards in its journal International Productivity Monitor.

    Volume (Year): 22 (2011)
    Issue (Month): (Fall)
    Pages: 29-43

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    Handle: RePEc:sls:ipmsls:v:22:y:2011:3
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    1. Dirk Pilat & Agn├Ęs 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.
    2. Henk Kox & Luis Rubalcaba, 2007. "Business services and the changing structure of European economic growth," CPB Memorandum 183, CPB Netherlands Bureau for Economic Policy Analysis.
    3. Luis Rubalcaba, 2007. "Services in European Policies," Bruges European Economic Policy Briefings 16, European Economic Studies Department, College of Europe.
    4. 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.
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