• Table of Contents
    • Abstract
    • Keywords
    • Article
      • The four sources of de-industrialization
        • The first source of de-industrialization: an ‘inverted-U’ relationship between manufacturing employment and income per capita.
        • The second source of de-industrialization: a declining relationship over time between income per capita and manufacturing employment
        • The third source of de-industrialization: changing income per capita corresponding to the turning point of the regression
        • The fourth source of de-industrialization: the Dutch Disease
      • De-industrialization: does it matter?
    • See Also
    • Bibliography
    • How to cite this article

de-industrialization, ‘premature’ de-industrialization and the Dutch Disease

José Gabriel Palma
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by Steven N. Durlauf and Lawrence E. Blume
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Abstract

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’.
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Article

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How to cite this article

Palma, José Gabriel. "de-industrialization, ‘premature’ de-industrialization and the Dutch Disease." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 23 September 2017 <http://www.dictionaryofeconomics.com/article?id=pde2008_D000268> doi:10.1057/9780230226203.0369

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