The New Palgrave Dictionary of Economics Online

OECD countries began de-industrializing in the late 1960s, while some high-income developing countries in East Asia entered this phase in the 1980s. Soon afterwards, some middle-income Latin American countries and South Africa also began to de-industrialize (‘prematurely’) after radical economic reforms, despite their level of income per capita being far lower than other countries which began to de-industrialize earlier. Since manufacturing is considered by many as the most effective engine of growth, it has been argued that de-industrialization could have significant negative long-term effects on growth, investment and employment, especially when done ‘prematurely’ or due to ‘Dutch disease’.