Growth, Trade, and Deindustrialization

Ramana Ramaswamy and Bob Rowthorn

No 1998/060, IMF Working Papers from International Monetary Fund

Abstract: This paper shows that deindustrialization is explained primarily by trends internal to the advanced economies. These include the combined effects on manufacturing employment of a relatively faster growth of productivity in manufacturing, the associated relative price changes, and shifts in the structure of demand between manufactures and services. North-South trade explains less than one fifth of deindustrialization in the advanced economies. Moreover, the contribution of North-South trade to deindustrialization has been mainly through its effects in stimulating labor productivity in Northern manufacturing. It has had little enduring effect on total manufacturing output in the advanced economies.

Keywords: WP; income elasticity; productivity growth; trade balance; Deindustrialization; North-South trade; per capita income; dependent variable; demand-creating effect; output equation; productivity change; income coefficient; labor-saving impact; productivity trend; Manufacturing; Employment; Productivity; Personal income; Labor productivity; East Asia (search for similar items in EconPapers)
Pages: 28
Date: 1998-04-01
References: Add references at CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=2584 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:1998/060

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().