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The soundness of returning to manufacturing through the lens of productivity accounting

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  • Dariusz Cezary Kotlewski

Abstract

This article assesses whether the world economy is actually returning to manufacturing, and in particular, whether this is, or would be, economically sound in light of KLEMS productivity accounting. In this paper, the term 'economic soundness' is applied exclusively to situations in which reindustrialization is likely to accelerate economic growth. Environmental, social, and other pertinent issues are not considered. It has been established that the countries under consideration generally did not reindustrialize during the stipulated periods, despite it being economically advisable to do so. Returning to manufacturing may, therefore, become a major growth factor in the post-Covid economic reconstruction (which is being prolonged by the Ukraine-Russia conflict).

Suggested Citation

  • Dariusz Cezary Kotlewski, 2023. "The soundness of returning to manufacturing through the lens of productivity accounting," Ekonomista, Polskie Towarzystwo Ekonomiczne, issue 3, pages 253-274.
    • Handle: RePEc:aoq:ekonom:y:2023:i:3:p:253-274
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    More about this item

    Keywords

    GVA; MFP; productivity; KLEMS; decomposition;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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