Template-type: ReDif-Paper 1.0
Author-Name: Tregenna, Fiona
Author-workplace-name: UNU-MERIT 
Title: Deindustrialisation, structural change and sustainable economic growth
Abstract: This paper reviews the literature and empirical evidence on deindustrialisation, with a
	 focus on premature deindustrialisation. Structural change and industrialisation have
	 long been considered important for developing countries to 'catch up'. However, there
	 has been widespread deindustrialisation over the past few decades, which is setting in
	 at lower levels of income per capita and lower shares of manufacturing in the employment
	 or GDP than earlier. Premature deindustrialisation can be defined as deindustrialisation
	 that begins at a lower level of GDP per capita and/or at a lower level of manufacturing
	 as a share of total employment and GDP, than is typically the case internationally. Many
	 of the cases of premature deindustrialisation are in sub-Saharan Africa, in some
	 instances taking the form of 'pre-industrialisation deindustrialisation'. It is argued
	 here that premature deindustrialisation is likely to have especially negative effects on
	 growth. In addition to being influenced by the level of income per capita and share of
	 manufacturing in the economy when deindustrialisation begins, the effects of
	 deindustrialisation on growth are also expected to depend on whether or not it is policy
	 induced and the nature of the activities that are relatively contracting and expanding.
	 The paper concludes by exploring the implications for policymakers facing
	 deindustrialisation.
Keywords: deindustrialisation, industrial development, structural change, industrial policy,
	 manufacturing
Classification-JEL: L16; J21; O14; O25
Series: UNU-MERIT Working Papers
Creation-Date: 2015
Number: 2015-032
File-URL: https://unu-merit.nl/publications/wppdf/2015/wp2015-032.pdf
File-Format: application/pdf
File-Size: 275 kb
Handle: RePEc:unm:unumer:2015032