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WP/57 Manufacturing Productivity, Deindustrialization, and Reindustrialization

In considering pathways to industrialization in the twenty-first century, cognisance needs to be taken of the fact that many countries have actually been deindustrializing. This paper analyses deindustrialization experiences internationally, by decomposing changes in the level and share of manufacturing employment. The results indicate that in most countries the decline in manufacturing employment is associated mainly with rising labour productivity in manufacturing. Reindustrialization is likely to be important for long-term economic growth, yet it is difficult and is not common. This highlights the importance of robust industrial policies if countries are to move from deindustrialization to reindustrialization.
Publisher:
UNU-WIDER
Series:
WIDER Working Paper
Volume:
2011/57
Title:
WP/57 Manufacturing Productivity, Deindustrialization, and Reindustrialization
Authors:
Fiona Tregenna
Publication date:
September 2011
ISBN 13 Print:
978-92-9230-424-9
Copyright holder:
© UNU-WIDER
Copyright year:
2011
Keywords:
deindustrialization, reindustrialization, manufacturing, employment
JEL:
E23, E24, J21, L16, L52, L60, 014
Project:
Promoting Entrepreneurial Capacity
Sponsor:
UNU-WIDER acknowledges the financial contributions to the research programme by the governments of Denmark (Ministry of Foreign Affairs), Finland (Ministry for Foreign Affairs), Sweden (Swedish International Development Cooperation Agency—Sida) and the United Kingdom (Department for International Development).
Format:
online
 
This study has been prepared within a joint project of UNU-MERIT, UNU-WIDER, and UNIDO on Pathways to Industrialization in the 21st Century: New Challenges and Emerging Paradigms.
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