Characterising deindustrialisation: An analysis of changes in manufacturing employment and output internationally
By F. Tregenna. 2009
325 citations recorded by the source corpus.
Deindustrialisation is typically conceptualised as a decline in manufacturing as a share of total employment. From a Kaldorian perspective deindustrialisation could have negative implications for long-run growth, given the special growth-pulling properties of manufacturing. However, defining deindustrialisation purely in terms of employment share is conceptually limiting given that some of the Kaldorian processes operate primarily through output rather than employment, as well as blunting empirical analysis by not focussing enough on changes in manufacturing share of gross domestic product (GDP). This study develops a new method using decomposition techniques to analyse changes in manufacturing employment levels and shares in 48 countries over periods of 'deindustrialisation'. The analysis separates out changes in the levels and shares of employment manufacturing into components associated with changes in the share of manufacturing in GDP, the growth of manufacturing value-added, the labour intensity of manufacturing production and economic growth. The results indicate that in most cases the decline in manufacturing employment is associated primarily with falling labour intensity of manufacturing rather than an overall decline in the size or share of the manufacturing sector. We suggest that deindustrialisation should appropriately be defined in terms of a sustained decline in both the share of manufacturing in total employment and the share of manufacturing in GDP. Copyright The Author 2008. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved., Oxford University Press.
Subfields: Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/ebf4e3cc191e21cd48c737319d46c6e0cf5e4e36
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Citations in the corpus
- Desindustrialização: conceituação, causas, efeitos e o caso brasileiro* (2010, background): “Mais recentemente, Tregenna (2009) redefiniu de forma mais ampla o conceito “clássico” de desindustrialização como sendo uma situação na qual tanto o emprego industrial como o valor adicionado da indústria se reduzem como proporção do emprego total e do PIB, respectivamente.”
- The Importance of Manufacturing in Economic Development: Has This Changed? (2017, unknown): “Deindustrialization is primarily attributed to a decline in labour intensity and a shift of manufacturing activities to lower income countries based on trade between mature economies and developing countries (Tregenna, 2009; Kucera and William, 2003; Rowthorn and Ramaswamy, 1997).”
- Escaping the middle-income technology trap: A comparative analysis of industrial policies in China, Brazil and South Africa (2020, background): “Countries that are classified in the group of middle-income countries are highly heterogeneous with respect to the structural composition of their economies, their levels of technological capabilities, and their experiences of premature deindustrialisation (Tregenna, 2009).”