ABSTRACT
An increasingly prevalent form of structural change internationally is deindustrialization, which is most commonly defined as a decline in the share of manufacturing in total employment. Deindustrialization has been observed in many countries of the North over the past few decades. One of the contributing factors to this was the partial ‘relocation’ of manufacturing to countries of the South, especially to the successively emerging groups of ‘Asian Tigers’. More recently, there has been deindustrialization in a number of countries of the South as well, especially in middle-income countries. This is likely to be associated, at least in part, to shifting locations of manufacturing amongst developing countries. Deindustrialization is also associated with changing dynamics of manufacturing within countries, which lead to greater reductions in the share of manufacturing in countries’ total employment than in their total value-added.
