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Deindustrialization? A global perspective

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  • Felipe, Jesus
  • Mehta, Aashish

Abstract

Recent studies show that, within countries, manufacturing labor productivity growth has outstripped aggregate labor productivity growth, putting significant downwards pressure on national manufacturing employment shares. We compile the first (nearly) global database of national manufacturing employment and output levels over time, and use it to document two facts seemingly at odds with these results: (1) the manufacturing sector’s share of global employment did not fall between 1970 and 2010; and (2) manufacturing and aggregate labor productivity at the global level grew at similar rates. We show that these trends occurred because rapid within-country manufacturing productivity growth was counterbalanced by a shift of manufacturing jobs towards lower productivity economies.

Suggested Citation

  • Felipe, Jesus & Mehta, Aashish, 2016. "Deindustrialization? A global perspective," Economics Letters, Elsevier, vol. 149(C), pages 148-151.
    • Handle: RePEc:eee:ecolet:v:149:y:2016:i:c:p:148-151
    DOI: 10.1016/j.econlet.2016.10.038
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    References listed on IDEAS

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    1. Maroto-Sánchez, Andrés & Cuadrado-Roura, Juan R., 2009. "Is growth of services an obstacle to productivity growth? A comparative analysis," Structural Change and Economic Dynamics, Elsevier, vol. 20(4), pages 254-265, December.
    2. Dani Rodrik, 2016. "Premature deindustrialization," Journal of Economic Growth, Springer, vol. 21(1), pages 1-33, March.
    3. Mary O'Mahony & Marcel P. Timmer, 2009. "Output, Input and Productivity Measures at the Industry Level: The EU KLEMS Database," Economic Journal, Royal Economic Society, vol. 119(538), pages 374-403, June.
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    More about this item

    Keywords

    Deindustrialization; Industrialization; Globalization; Manufacturing jobs; Labor productivity; Structural transformation;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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