Deindustrialization: Causes and Implications

Ramana Ramaswamy and Bob Rowthorn

No 1997/042, IMF Working Papers from International Monetary Fund

Abstract: All advanced economies have experienced a secular decline in the share of manufacturing employment—a phenomenon referred to as deindustrialization. This paper argues that, contrary to popular perceptions, deindustrialization is not a negative phenomenon, but is the natural consequence of the industrial dynamism in an already developed economy, and that North-South trade has had very little to do with deindustrialization. The paper also discusses the implications of deindustrialization for the growth prospects and the nature of labor market arrangements in the advanced economies.

Keywords: WP; deindustrialization; share; economy; service sector; North-South trade; employment share; current price; services employment; deindustrialization phase; productivity effect; process of deindustrialization; Manufacturing; Employment; Productivity; Services sector; Trade balance; East Asia; Europe (search for similar items in EconPapers)
Pages: 38
Date: 1997-04-01
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Citations: View citations in EconPapers (104)

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