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Mathematics, 29.11.2021 06:00 Mathematics, 29.11.2021 06:00 Abstract Deindustrialisation is typically conceptualised as a decline in manufacturing as a share of total employment. From a Kaldorian perspective deindustrialisation could have negative implications for long-run growth, given the special growth-pulling properties of manufacturing. However, defining deindustrialisation purely in terms of employment share is conceptually limiting given that some of the Kaldorian processes operate primarily through output rather than employment, as well as blunting empirical analysis by not focussing enough on changes in manufacturing share of gross domestic product (GDP). This study develops a new method using decomposition techniques to analyse changes in manufacturing employment levels and shares in 48 countries over periods of 'deindustrialisation'. The analysis separates out changes in the levels and shares of employment manufacturing into components associated with changes in the share of manufacturing in GDP, the growth of manufacturing value-added, the labour intensity of manufacturing production and economic growth. The results indicate that in most cases the decline in manufacturing employment is associated primarily with falling labour intensity of manufacturing rather than an overall decline in the size or share of the manufacturing sector. We suggest that deindustrialisation should appropriately be defined in terms of a sustained decline in both the share of manufacturing in total employment and the share of manufacturing in GDP. Journal Information The Cambridge Journal of Economics, founded in 1977 in the traditions of Marx, Keynes, Kalecki, Joan Robinson and Kaldor, provides a forum for theoretical, applied, policy and methodological research into social and economic issues. Publisher Information Oxford University Press is a department of the University of Oxford. It furthers the University's objective of excellence in research, scholarship, and education by publishing worldwide. OUP is the world's largest university press with the widest global presence. It currently publishes more than 6,000 new publications a year, has offices in around fifty countries, and employs more than 5,500 people worldwide. It has become familiar to millions through a diverse publishing program that includes scholarly works in all academic disciplines, bibles, music, school and college textbooks, business books, dictionaries and reference books, and academic journals. Rights & Usage This item is part of a JSTOR Collection. What is one likely outcome of deindustrialization in a region of manufacturing communities?Deindustrialization causes the economic capital for manufacturing within a particular region to be lost to other parts of a country or to other countries. The effects of deindustrialization, however, are typically regional, and can lead to a loss in the economic vibrancy and cultural pride within a region.
What is said to be one of the results of deindustrialization?During deindustrialization, the declining share of employment in manufacturing appears to mirror a decline in the share of manufacturing value added in GDP. At first glance, this decline would suggest that domestic expenditure on manufactures has decreased while expenditure on services has increased.
What do you mean by deindustrialization?Deindustrialization is the reduction of manufacturing within an economy. It is a central process in uneven geographical development, unfolding differently in cities and regions internationally.
Why does deindustrialization occur?The main reason for deindustrialization is the faster growth of productivity in manufacturing than in services. North-South trade has played very little role in deindustrialization.
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Explain one spatial change in manufacturing employment patterns as a result of deindustrialization.
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