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The Impact of Deindustrialization on Economic Growth——Evidence from China

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  • Yang Feng
  • Yang Wang

Abstract

Deindustrialization is a widespread phenomenon, both in developed economies or developing countries in the history. This paper examinate the impact of deindustrialization, which is caused by administrative measures aimed at overcapacity, on China’s economic growth in the lastest decade. We adopt empirical approach to estimate the impact, the results show deindustrialization have a significantly negative effect on economic growth in the central and western China, which is stronger in the cites with fast deindustrialization, and in medium and small cities. It provides evidence that rapid deindustrialization hinders the sustainability and magnifies the vulnerability of economic growth, especially premature deindustrialization.

Suggested Citation

  • Yang Feng & Yang Wang, 2021. "The Impact of Deindustrialization on Economic Growth——Evidence from China," International Business Research, Canadian Center of Science and Education, vol. 14(5), pages 1-18, May.
    • Handle: RePEc:ibn:ibrjnl:v:14:y:2021:i:5:p:18
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    References listed on IDEAS

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    4. Lionel Fontagné & Ann Harrison, 2017. "The Factory-Free Economy. Outsourcing, Servitization, and the Future of Industry," PSE-Ecole d'économie de Paris (Postprint) halshs-02923043, HAL.
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    Cited by:

    1. Chen, Guo & Liu, Yishuang & Gao, Qizheng & Zhang, Jianqing, 2023. "Does regional services development enhance manufacturing firm productivity? A manufacturing servitization perspective," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 451-466.

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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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