Arbeitspapier

De- versus Re-industrialisation: Is Structural Change Reversible?

We investigate the causes of de-industrialisation and potential for re-industrialisation. Using WIOD data and introducing new measures of "induced value added chains", we directly relate a sector's income share to the net value added flows as induced by domestic and foreign final demand. This method identifies the declining share of manufacturing in domestic expenditures on final demand to be the main cause of de-industrialisation. International trade has a limited impact, though differences in comparative advantage between countries do matter. In addition, the strong decline of relative prices in manufacturing points to an interesting policy paradox: precisely if successful in raising competitiveness and hence productivity growth of manufacturing, they also further its global decline of relative prices. Contrary to the stated objective of re-industrialisation, meaningful industrial policies will accelerate de-industrialisation in the global economy. To raise the income share of manufacturing, policies must target, e.g., competition and productivity growth in services.

Sprache
Englisch

Erschienen in
Series: WIFO Working Papers ; No. 506

Klassifikation
Wirtschaft
Thema
Industrial policy
de-industrialisation
global value chains
input-output analysis
WIOD

Ereignis
Geistige Schöpfung
(wer)
Peneder, Michael
Streicher, Gerhard
Ereignis
Veröffentlichung
(wer)
Austrian Institute of Economic Research (WIFO)
(wo)
Vienna
(wann)
2016

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Peneder, Michael
  • Streicher, Gerhard
  • Austrian Institute of Economic Research (WIFO)

Entstanden

  • 2016

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