Re-industrialisation - A Commentary

Kenneth Coutts () and Robert Rowthorn

Working Papers from Centre for Business Research, University of Cambridge

Abstract: The share of manufacturing in UK employment and value-added at current prices ("value-added" for short) has fallen dramatically in recent years. This commentary investigates the feasibility of reversing this decline. The paper explores the implications of four scenarios over the next twenty-five years. These scenarios generate very different trajectories for the share of manufacturing in value-added. A stronger manufacturing sector would grow faster and generate more net exports. However, the share of manufacturing in employment or value-added would be unlikely to increase. Rapid labour-saving productivity growth in the manufacturing sector would limit the growth of employment in this sector despite rising output. It would also drive down the relative price of manufactured goods, thereby holding down the share of the fast growing manufacturing sector in value-added.

Keywords: De-industrialisation; re-industrialisation; output shares; employment shares (search for similar items in EconPapers)
JEL-codes: E66 F41 F47 O5 (search for similar items in EconPapers)
Date: 2013-12
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:cbr:cbrwps:wp454

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