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The Causes of Deindustrialization: a conceptual discussion

Author

Listed:
  • Alexandre Ricardo de Aragao Batista
  • Guilherme Grandi

Abstract

The paper presents the conceptual variety around the term deindustrialization. Then, based on the literature and the debate raised, it presents its causes which, in this article, include the real exchange rate, trade liberalization, the impact of Chinese trade, the services sector, labor productivity, investments, effective demand, taxes, and some extra-economic impacts. In addition to exposing our critical view on the subject, we observe that there is great heterogeneity in the concept of deindustrialization and its causes, which does not lead the debate to a consensus.

Suggested Citation

  • Alexandre Ricardo de Aragao Batista & Guilherme Grandi, 2023. "The Causes of Deindustrialization: a conceptual discussion," Working Papers, Department of Economics 2023_05, University of São Paulo (FEA-USP).
    • Handle: RePEc:spa:wpaper:2023wpecon5
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    More about this item

    Keywords

    Deindustrialization; Industry; Dutch Disease;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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