Deindustrialization: Causes and Implications

April 1, 1997

Preview Citation

Format: Chicago

Ramana Ramaswamy, and Bob Rowthorn. Deindustrialization: Causes and Implications, (USA: International Monetary Fund, 1997) accessed December 22, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Economic sectors, Employment, International trade, Labor, Manufacturing, Production, Productivity, Services sector, Trade balance

Keywords: Current price, Deindustrialization, Deindustrialization phase, East Asia, Economy, Employment, Employment share, Europe, Manufacturing, North-South trade, Process of deindustrialization, Productivity, Productivity effect, Service sector, Services employment, Services sector, Share, Trade balance, WP

Publication Details

Pages:

38
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1997/042
Stock No:

WPIEA0421997
ISBN:

9781451975826
ISSN:

1018-5941

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