The Structural Dynamics of Deindustrialisation and the Effect of Accelerated Globalisation on Manufacturing

17  December 2018    3:00 pm CET

Juergen Amann, University of Nottingham

In cooperation with:


wiiw, Rahlgasse 3, 1060 Vienna


This presentation is based on two ongoing projects with UNIDO.

In our work we revisit the empirical literature on structural transformation. Our analysis focuses both on the issue of structural changes within manufacturing and also provides evidence of the changing role of manufacturing in the wider economy. This is done by means of carefully disaggregating and analysing structural change patterns based on a new and comprehensive data base for the post war era taking into account various sources of heterogeneities and variations all of which are discussed in the context of their theoretical ramification. Our analysis indicates a high degree of sector-specific heterogeneity within manufacturing that is also subject to significant variation over time.

We furthermore examine the patterns of structural change for a particular set of advanced economies and put special emphasis on the most recent periods characterised by a high and growing degree of global market integration. We contextualise the link between productivity growth and the structural transformation of manufacturing and service industries, and explore potential channels of heterogeneity of the observed patterns across different specifications. Our study finds that deindustrialisation patterns in manufacturing underwent significant structural changes in the mid-1990s and specifically that the positive link between manufacturing productivity and restructuring accelerated in the post-1995 period, whereas similar patterns were not observed for the service sector. Moreover, low-technology industries in manufacturing and net-importing countries, in particular, seem to be most severely affected by the recent wave of Asia-led globalisation.

Keywords: Deindustrialisation, employment, globalisation, industrial policy, industrialisation, international trade, structural change

JEL classification: F62, L60, O40, O57