IDEAS home Printed from
   My bibliography  Save this paper

Manufacturing Productivity, Deindustrialization, and Reindustrialization


  • Tregenna, Fiona


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.

Suggested Citation

  • Tregenna, Fiona, 2011. "Manufacturing Productivity, Deindustrialization, and Reindustrialization," WIDER Working Paper Series 057, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:wp2011-57

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Alejandro Diaz-Bautista, 2004. "Mexico’s Industrial Engine of Growth: Cointegration and Causality," Econometrics 0402010, EconWPA.
    2. 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.
    3. 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 201-219, April.
    4. 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.
    5. 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.
    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. 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.
    8. 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.
    9. 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.
    10. Drakopoulos, Stavros & Theodossiou, Ioannis, 1991. "Kaldorian Approach to Greek Economic Growth," MPRA Paper 48989, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Hu, Zheng & Hu, Zhaoguang, 2013. "Production function with electricity consumption and its applications," Energy Economics, Elsevier, vol. 39(C), pages 313-321.
    2. Alberto Botta & Antoine Godin & Marco Missaglia, 2016. "Finance, foreign (direct) investment and dutch disease: the case of Colombia," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 33(2), pages 265-289, August.
    3. Tregenna, Fiona, 2015. "Deindustrialisation, structural change and sustainable economic growth," MERIT Working Papers 032, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Victoria V. Akberdina & Anatoly V. Grebenkin & Oleg M. Barbakov, 2015. "Modeling Response to Innovations in Industrialized Regions: The Russian Experience," International Journal of Economics and Financial Issues, Econjournals, vol. 5(4), pages 910-921.
    5. Viktoria Akberdina & Anatoliy Grebenkin & Nikolay Bukhvalov, 2015. "Simulation of Innovative Resonance in the Industrial Regions," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(4), pages 289-308.
    6. Klimczuk-Kochańska, Magdalena & Skarzyński, Michał & Hogeforster, Jürgen, 2015. "Przyszłość edukacji zawodowej. Kierunki reorientacji i nowe obszary aktywności zawodowej nauczycieli zawodu
      [The Future of Vocational Education: The Directions of Reorientation and New Areas of Pro
      ," MPRA Paper 75390, University Library of Munich, Germany.
    7. Gisela Di Meglio & Jorge Gallego & Andrés Maroto & Maria Savona, 2015. "Services in Developing Economies: A new chance for catching-up?," SPRU Working Paper Series 2015-32, SPRU - Science and Technology Policy Research, University of Sussex.
    8. repec:mje:mjejnl:v:13:y:2017:i:2:p:93-106 is not listed on IDEAS
    9. Szirmai, Adam & Verspagen, Bart, 2015. "Manufacturing and economic growth in developing countries, 1950–2005," Structural Change and Economic Dynamics, Elsevier, vol. 34(C), pages 46-59.
    10. Klimczuk, Andrzej & Skarzyński, Michał & Juchnicka, Marta, 2015. "Doradcze i edukacyjne aspekty reorientacji zawodowej i wsparcia zatrudnienia zwalnianych pracowników oświaty
      [Advisory and educational aspects of the retraining and employment support redundant wor
      ," MPRA Paper 63890, University Library of Munich, Germany.
    11. Nebojsa Stojcic & Zoran Aralica, 2017. "Choosing Right from Wrong: Industrial Policy and (De)industrialization in Central and Eastern Europe," Working Papers 1703, The Institute of Economics, Zagreb.
    12. Zoran Aralica & Nebojsa Stojcic, 2015. "Regional Patterns of Deindustrialization and Prospects for Reindustrialization in South and Central East European Countries," wiiw Balkan Observatory Working Papers 118, The Vienna Institute for International Economic Studies, wiiw.
    13. Marco Vivarelli, 2013. "Technology, Employment and Skills: An Interpretative Framework," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 3(1), pages 66-89, June.
    14. repec:mje:mjejnl:v:12:y:2017:i:2:p:93-106 is not listed on IDEAS
    15. Foster-McGregor, Neil & Kaba, Ibrahima & Szirmai, Adam, 2015. "Structural change and the ability to sustain growth," MERIT Working Papers 048, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    16. Erber, Georg & Hagemann, Harald, 2012. "Wachstums- und Investitionsdynamik in Deutschland," Violette Reihe: Schriftenreihe des Promotionsschwerpunkts "Globalisierung und Beschäftigung" 36/2012, University of Hohenheim, Carl von Ossietzky University Oldenburg, Evangelisches Studienwerk.
    17. Klimczuk, Andrzej, 2014. "Raport Desk Research: Praktyki wsparcia nauczycieli zawodowych zagrożonych bezrobociem
      [Desk Research Report: Practices of Supporting Teachers Threatened by Unemployment]
      ," MPRA Paper 63886, University Library of Munich, Germany.
    18. 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.
    19. Faruk Ülgen, 2013. "Redesigning finance towards job-creating long-term development : some regulatory roots," Post-Print halshs-00957355, HAL.

    More about this item


    deindustrialization; reindustrialization; manufacturing; employment;

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:unu:wpaper:wp2011-57. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mauricio Roa Grisales). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.