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The Myths and Reality of Deindustrialization in Sweden: The Role of Productivity

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  • Daniel Lind

Abstract

This article analyzes three possible hypotheses behind deindustrialization in Sweden. The main conclusion is that deindustrialization is both a myth and a reality. There has been a decrease in manufacturing employment in both relative and absolute terms in the post-war period, and the share of nominal GDP has gone in the same direction. However, the high productivity growth in manufacturing has lead to an increase in its share of real GDP since the beginning of the 1990's. Using input-output analysis, it is shown that the loss of employed who work with satisfying final demand for manufactured goods is less pronounced than what is shown by official statistics. The explanation for this is a deeper interaction with the rest of the economy, particularly in relation to knowledge-intensive service industries.

Suggested Citation

  • Daniel Lind, 2011. "The Myths and Reality of Deindustrialization in Sweden: The Role of Productivity," International Productivity Monitor, Centre for the Study of Living Standards, vol. 22, pages 29-43, Fall.
    • Handle: RePEc:sls:ipmsls:v:22:y:2011:3
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    File URL: http://www.csls.ca/ipm/22/IPM-22-Lind.pdf
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    References listed on IDEAS

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    1. Cáceres, Luis René, 2017. "Deindustrialization and economic stagnation in El Salvador," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    2. Ali-Yrkkö, Jyrki & Heikkilä, Jussi & Lööf, Hans & Martinsuo, Miia & Mohammadi, Ali & Olhager, Jan & Pajarinen, Mika & Rouvinen, Petri & Tuhkuri, Joonas, . "International Sourcing in Finland and Sweden," ETLA B, The Research Institute of the Finnish Economy, number 275, June.

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