The Myths and Reality of Deindustrialization in Sweden: the Role of Productivity

This article analyzes three possible hypotheses behind deindustrialization in Sweden. The main conclusion is that deindustrialization is both a myth and a reality. There has been a decrease in manufacturing employment in both relative and absolute terms in the post-war period, and the share of nomin...

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Main Author: Daniel Lind
Format: Article
Language:English
Published: Centre for the Study of Living Standards 2011-09-01
Series:International Productivity Monitor
Subjects:
Online Access:http://www.csls.ca/ipm/22/IPM-22-Lind.pdf
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author Daniel Lind
author_facet Daniel Lind
author_sort Daniel Lind
collection DOAJ
description This article analyzes three possible hypotheses behind deindustrialization in Sweden. The main conclusion is that deindustrialization is both a myth and a reality. There has been a decrease in manufacturing employment in both relative and absolute terms in the post-war period, and the share of nominal GDP has gone in the same direction. However, the high productivity growth in manufacturing has lead to an increase in its share of real GDP since the beginning of the 1990's. Using input-output analysis, it is shown that the loss of employed who work with satisfying final demand for manufactured goods is less pronounced than what is shown by official statistics. The explanation for this is a deeper interaction with the rest of the economy, particularly in relation to knowledge-intensive service industries.
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spelling doaj.art-11895930003d4439acf738bdc0a88daf2022-12-21T18:22:16ZengCentre for the Study of Living StandardsInternational Productivity Monitor1492-97591492-97672011-09-01222943The Myths and Reality of Deindustrialization in Sweden: the Role of ProductivityDaniel Lind0UnionenThis article analyzes three possible hypotheses behind deindustrialization in Sweden. The main conclusion is that deindustrialization is both a myth and a reality. There has been a decrease in manufacturing employment in both relative and absolute terms in the post-war period, and the share of nominal GDP has gone in the same direction. However, the high productivity growth in manufacturing has lead to an increase in its share of real GDP since the beginning of the 1990's. Using input-output analysis, it is shown that the loss of employed who work with satisfying final demand for manufactured goods is less pronounced than what is shown by official statistics. The explanation for this is a deeper interaction with the rest of the economy, particularly in relation to knowledge-intensive service industries.http://www.csls.ca/ipm/22/IPM-22-Lind.pdfnominal gdpproductivityswedeninput-output analysis
spellingShingle Daniel Lind
The Myths and Reality of Deindustrialization in Sweden: the Role of Productivity
International Productivity Monitor
nominal gdp
productivity
sweden
input-output analysis
title The Myths and Reality of Deindustrialization in Sweden: the Role of Productivity
title_full The Myths and Reality of Deindustrialization in Sweden: the Role of Productivity
title_fullStr The Myths and Reality of Deindustrialization in Sweden: the Role of Productivity
title_full_unstemmed The Myths and Reality of Deindustrialization in Sweden: the Role of Productivity
title_short The Myths and Reality of Deindustrialization in Sweden: the Role of Productivity
title_sort myths and reality of deindustrialization in sweden the role of productivity
topic nominal gdp
productivity
sweden
input-output analysis
url http://www.csls.ca/ipm/22/IPM-22-Lind.pdf
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