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Deindustrialization: Causes and Implications

Author

Listed:
  • Mr. Ramana Ramaswamy
  • Mr. Bob Rowthorn
Abstract
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.

Suggested Citation

  • Mr. Ramana Ramaswamy & Mr. Bob Rowthorn, 1997. "Deindustrialization: Causes and Implications," IMF Working Papers 1997/042, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:1997/042
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