Deindustrialization: Causes and Implications
38 Pages Posted: 15 Feb 2006
Date Written: April 1997
All advanced economies have experienced a secular decline in the share of manufacturing employmenta 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: Deindustrialization, North-South trade
JEL Classification: 01, 03, F1, F43
Suggested Citation: Suggested Citation