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Explaining deindustrialisation from a vertical perspective: industrial linkages, producer services, and international trade

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  • Claudio Di Berardino
  • Gianni Onesti

Abstract

This paper aims to provide new findings on the extent of the deindustrialisation process by adopting a new subsystem approach. In particular, we have extended the subsystem approach in a multi-country setting using world input-output tables. An empirical investigation is carried out on the four largest eurozone countries based on the World Input-Output Database (WIOD). The results show the substantial fall in labour intensity of production, rather than a real decline in manufacturing. We establish a series of facts concerning deindustrialisation. First, international fragmentation of inter-industry linkages has rapidly increased. Second, a pervasive process of falling employment has been influenced by decline in domestic demand. Third, the direction of this change is driven by the technological and innovative intensity of subsystems. Fourth, we show increasing specialisation in producer services within the manufacturing subsystem.

Suggested Citation

  • Claudio Di Berardino & Gianni Onesti, 2021. "Explaining deindustrialisation from a vertical perspective: industrial linkages, producer services, and international trade," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 30(7), pages 685-706, October.
    • Handle: RePEc:taf:ecinnt:v:30:y:2021:i:7:p:685-706
    DOI: 10.1080/10438599.2020.1763550
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    Cited by:

    1. Lorenzo Cresti & Giovanni Dosi & Federico Riccio & Maria Enrica Virgillito, 2023. "Italy and the Trap of GVC Downgrading: Labour Dependence in the European Geography of Production," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(3), pages 869-906, November.
    2. Marco Capasso & Marina Rybalka, 2022. "Innovation Pattern Heterogeneity: Data-Driven Retrieval of Firms’ Approaches to Innovation," Businesses, MDPI, vol. 2(1), pages 1-28, March.
    3. Herrero, Daniel & Rial, Adrián, 2023. "Labor costs, KIBS, and export performance: A comparative analysis of Germany and Mediterranean economies," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 184-198.
    4. Lábaj, Martin & Majzlíková, Erika, 2023. "How nearshoring reshapes global deindustrialization," Economics Letters, Elsevier, vol. 230(C).
    5. Antonioli, Davide & Berardino, Claudio Di & Onesti, Gianni, 2023. "The intersectoral linkages and manufacturing productivity growth in Italian regions using the I-O approach," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 120-133.
    6. Lorenzo Cresti & Maria Enrica Virgillito, 2022. "Strategic sectors and essential jobs: a new taxonomy based on employment multipliers," LEM Papers Series 2022/23, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    7. Claudio Di Berardino & Ilaria Doganieri & Stefano D'Angelo & Gianni Onesti, 2023. "Intersectoral and intercountry linkages as drivers of employment growth in emerging economies: The case of Visegrád countries," Metroeconomica, Wiley Blackwell, vol. 74(1), pages 163-187, February.

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