de industrialisation and the balance of payments in advanced economies this paper defines de industrialisation as a secular decline in the share of manufacturing in national employment de industrialisation in this sense has been a widespread feature of economic growth in advanced economies in recent decades the paper considers briefly what explains this development and quantifies some of the factors responsible it then examines the experience of britain and america which are two countries that have combined rapid de industrialisation with a strong overall economic performance the paper considers both the domestic situation of manufacturing industry in these countries and its foreign trade performance it concludes by examining in detail the british balance of payments and documenting how improvements in the non manufacturing sphere have helped offset a worsening performance in manufacturing trade copyright 2004 oxford university press

a new theoretical analysis of deindustrialisation the analysis of deindustrialisation has been led by heterodox economists especially those in the structuralist and kaldorian traditions based on a conception of sectoral specificity and the role of manufacturing in growth sectors are not the units of marxian economic analysis but thinking through the meaning of sectors in marxian terms allows for an analysis of the meaning and implications of a change in sectoral structure deindustrialisation is the sectoral shift that has been most prominent in recent decades and which is likely to have significant implications for the future of capitalism this article develops an original marxian theorisation of deindustrialisation this conceptualisation includes a distinction between two forms of deindustrialisation as well as taking into account changes in sectoral structure the proposed typology considers whether such changes are associated with a shift between those activities that produce surplus value and those that do not or only a shift in the composition of surplus value producing activities the distinction between different forms of deindustrialisation allows for an arguably richer analysis of this phenomenon than in more narrowly sector based approaches

labor productivity and the law of decreasing labor content this paper analyzes labor productivity and the law of decreasing labor content ldlc originally formulated by farjoun and machover 1983 first it is shown that the standard measures of labor productivity may be rather misleading owing to their emphasis on monetary aggregates instead the conventional classical marxian labor values provide the theoretically and empirically sound measures of labor productivity the notion of labor content and the ldlc are therefore central in order to understand the dynamics of capitalist economies second some rigorous theoretical relations between different forms of proflt driven technical change and productivity are derived in a general input output framework with flxed capital which provide deterministic foundations to the ldlc third the main theoretical propositions are analyzed empirically based on a new dataset of the german economy

adaptive economic growth this paper develops an evolutionary theory of adaptive growth understood as a product of structural change and economic self transformation based upon processes that are closely connected with but not reducible to the growth of knowledge the dominant connecting theme is enterprise the innovative variations it generates and the multiple connections between investment innovation demand and structural transformation in the market process the paper explores the dependence of macroeconomic productivity growth on the diversity of technical progress functions and income elasticities of demand at the industry level and the resolution of this diversity into patterns of economic change through market processes it is shown how industry growth rates are constrained by higher order processes of emergence that convert an ensemble of industry growth rates into an aggregate rate of growth the growth of productivity output and employment are determined mutually and endogenously and their values depend on the variation in the primary causal influences in the system

energy demand and the composition of output growth abstract using the theory of the firm the effects of unbalanced rates of output growth on aggregate energy demand are examined theoretical results show that failure to consider unbalanced growth leads to bias in aggregate price elasticity estimates empirically differential output growth rates are important contributors to the overall growth of energy and other inputs they can be as important as net price effects in explaining input growth unbalanced growth effects help to explain changes in labor s productivity growth and have increased in importance since the arab oil embargo they are quite significant relative to other sources of change during business cycle downturns

structural changes and sustainability a selected review of the empirical evidence abstract the paper offers a review of selected topics in the empirical literature on structural change and sustainability we focus on aspects of structural change that directly affect emissions and energy intensity changes of the sectoral composition of economies trade and international fragmentation of production technological change and innovation and demand we identify several empirical facts first only a few countries have experienced a decoupling between growth and emissions due to proportionately faster growth rather than greater energy efficiency second the long term shift from manufacturing to services has not led in all cases to the de materialisation of economies and a lower environmental burden exploitation of energy efficiency increases depends on the ability of the service sectors to incorporate technical changes to reduce energy intensity third global trade and energy and emissions intensity trends support the pollution haven hypothesis which predicts displacement of the environmental burden from developed to emerging countries the pursuit by developing countries of a long term strategy of trading jobs for emissions is likely to exacerbate the asymmetry related to emissions intensities between developed and less developed economies the review should inform debate on environmental policy within the broader context of innovation and development policies

the drivers of structural change the main goal of this paper is to provide an integrated survey of the literature devoted to identifying the drivers of structural change broadly defined as the process of reallocation of economic activity across the three broad sectors agriculture manufacturing and services using the ggdc 10 sector database this paper first presents the empirical facts associated with structural change in different regions of the world that is europe and the usa asia latin america and africa then reviews four determinants of structural change i changes in income ii changes in relative sectoral prices iii changes in input output linkages and iv changes in comparative advantage s via globalization and trade

baumol s disease and dematerialization of the economy this paper argues that there is reason to be skeptical about the idea that the transition to a service economy will bring about dematerialization of production and consequent environmental improvement this is because the shift to a service economy is an illusion in terms of real production but is instead generated by the fall in the price of manufacturing goods relative to services which is in turn caused by more rapid productivity growth in manufacturing than in services this argument relies on the insights baumol provided on the nature of the service economy and uses swedish long term data on relative sectoral development as an empirical illustration on the other hand the paper argues that there is reason to be cautiously optimistic that structural change may bring about a greening of growth namely the changes in growth patterns sometimes labeled the third industrial revolution which is connected to the emergence of microelectronics swedish co2 emissions show a decline after 1970 which is mainly explained by a politically driven change in the mix of energy carriers but is also related to the stabilization of energy consumption this energy stabilization was caused by slow growth of the economy in conjunction with substantial declines in energy intensity within industrial sectors and an absence of relative growth of the heavy sectors a growth that had marked the economy between 1870 and 1970 microelectronics have contributed to permanently transforming the swedish industrial sector in a lighter direction reducing energy losses in heavy industries and stabilizing household energy consumption so it appears as if there may be some environmental gains from this development that was initiated in the 1970s but not from relatively more production in the service sector

the evolution of the industrial organisation of the production of knowledge this work elaborates the notion of localised technological knowledge based upon the distinction between information competence and knowledge and analyses the emergence of the new knowledge industry the evolution of the organisation of knowledge production is analysed through four stylised modes scientific entrepreneurship institutional variety vertical integration and technological cooperation the new trends towards the growth of knowledge intensive business service industries are detected and underlined they are considered as the outcome of the institutional formation of a market for knowledge based upon a process of increasing appropriability of localised knowledge based on the blending of generic scientific information and competence and growing scope of applicability via computercommunication systems deverticalisation of research activities from the boundaries of corporations the specification of a demand for technological competence and the specialising of independent firms in the production of technological competence and knowledge

the changing technology of technological change general and abstract knowledge and the division of innovative labour abstract in the past most innovations have resulted from empiricist procedures the outcome of each trial yielding knowledge that could not be readily extended to other contexts while trial and error may remain the primary engine of innovation developments in many scientific disciplines along with progress in computational capabilities and instrumentation are encouraging a new approach to industrial research instead of relying purely on trial and error the attempt is also to understand the principles governing the behaviour of objects and structures the result is that relevant information whatever its source can now be cast in frameworks and categories that are more universal the greater universality makes it possible for the innovation process to be organised in new ways firms can specialise and focus upon producing new knowledge and the locus of innovation may be spread across both users and producers more generally the use of general and abstract knowledge in innovation opens up the possibility for a division of labour in inventive activity the division of innovative labour the implications for public policy especially that on intellectual property rights are discussed

wages business cycles and comparative advantage abstract the standard equilibrium models of business cycles face a puzzling fact that total hours vary greatly over the business cycle without much variation in aggregate wages the model augments the standard rbc model to include lucas span of control distinction between market and non market and managerial and non managerial work makes aggregate wages far less cyclical than individual wages cross sectional comparative advantage between market and non market sector in the workforce substantially increases the response of aggregate hours to shifts in relative productivity as a result the model provides a reconciliation between data and equilibrium macroeconomics

real wages over the business cycle evidence from panel data one topic on which keynes did not disagree with classical economists was the cyclical behavior of real wages keynes 1936 as well as various classical writers predicted that real wages should move countercyclically quoting the general theory p 17 in general an increase in employment can only occur through the accompaniment of a decline in real wages thus i am not disputing this vital fact which the classical economists have rightly asserted as indefeasible this prediction is based on the premise of competition and a given short run capital stock increases in employment then correspond to more intensive use of capital and through diminishing product lower real wages for this reason evidence by dunlop 1938 and tarshis 1939 that real wages move procyclically was viewed as paradoxical both dunlop and tarshis based their findings on an observed positive correlation between real and money wages which given the procyclical movement of money wages implies a positive correlation between

does product lifetime extension increase our income at the expense of energy consumption abstract the present paper contributes to modeling a simple social accounting method with cumulative product lifetime distributions and argues how product lifetime extension affects income flow throughout the entire economic system empirical analysis focusing on automobile use ordinary passenger vehicle small passenger vehicle and light passenger vehicle in japan revealed that if all of the additional income gain from product lifetime extension flows into the investment sector a one year lifetime extension during the ten years of the study period 1990 2000 would have led to an increase in income in 2000 amounting to 7 billion yen as well as contributing to savings in energy amounting to 4 10 6 gj that is longer term passenger vehicle use increases income and decreases energy consumption under special cases we also found that in the general case when less than 93 of additional income resulting from vehicle lifetime extension is directed to the investment sector a 1 year automobile lifetime extension increases income at the expense of energy consumption

family labor supply and aggregate fluctuations abstract this paper considers an economy which is populated by a continuum of identical families consisting of two members the two members have different productivities and the family faces a fixed utility cost if both members supply labor simultaneously although both family members have the same preferences they display very different elasticities of labor supply a real business cycle model is calibrated and it is seen that this cross sectional heterogeneity results in interesting forms of aggregation bias

industrial composition interindustry effects and the u s productivity slowdown this paper investigates the effect of shifts in output composition on the slowdown of productivity growth in the united states between 1947 67 and 1967 76 i employ a leontief input output framework and a divisia index of aggregate productivity growth to separate the effects of changes in sectoral rates of technical progress from the effects of changes in output composition and interindustry flows on the change in overall productivity growth of the approximately 2 percentage point decline in overall total factor productivity growth 17 to 22 was due to compositional effects and the remainder to other factors t he importance of shifts in input or output composition in explaining the recent productivity slowdown in the united states has been a source of some controversy estimates of such shift effects vary considerably for example gollop 1982 calculated that resource shifts were actually an offset to the slowdown in productivity growth kutscher mark and norsworthy 1977 estimated that employment shifts had no effect on productivity growth thurow 1979 ascribed half of the slowdown between 1965 72 and 1972 77 to employment shifts and nordhaus 1972 attributed 77 of the decline from 1948 55 to 1965 71 to employment shifts in a related paper the possible reasons for these disparate results were discussed at length see baumol and wolff forthcoming briefly these differences stem primarily from the use of different concepts and measures actually three different concepts are used in the literature the first is a resource allocation or equilibrating shift effect which measures the increase in productivity that can result from a more efficient allocation of resources cf denison 1979a 1979b and 1984 norsworthy harper and kunze 1979 and gollop 1982 while interesting in itself this resource reallocation effect is a somewhat limited notion measuring the movement toward the efficient frontier instead of the outward movement of the frontier over time the second concept is the so called level effect which assesses the effect of resource shifts on overall productivity growth by holding constant the productivity levels of the various sectors of the economy cf nordhaus 1972 kutscher mark and norsworthy 1977 and thurow 1979 this measure was found to be quite arbitrary depending on the arbitrary choice of base year used in the computation the third is the so called rate effect which assesses the effect of shifts in resources by holding constant sectoral rates of productivity growth cf nordhaus 1972 baily 1982 and gollop 1982 all three authors found that the rate effect had a negligible influence on the productivity slowdown this measure is the most theoretically sound of the three and my measure will fall in this category though differ in significant ways from previous formulations and show a greater effect on overall productivity growth from compositional changes i shall first develop a general model to measure such shifts or composition effects from a leontief input output framework sections i and ii results for the u s economy over the 1947 76 period will then be reported with particular emphasis on accounting for the productivity slowdown after 1967 sections iii iv and v conclusions and a comparison with other results will be discussed in section vi vii and viii i the standard model following the work of peterson 1979 let us define x column vector of gross output by sector at time t y column vector of final demand by sector at time t at matrix of inter industry technical coefficients at time t it row vector of labor coefficients at time t showing employment per unit of output kt row vector of capital stock coefficients at time t showing the capital stock required per unit of output p row vector of prices at time t showing the price per unit of output of each industry received for publication june 27 1983 revision accepted for publication october 19 1984 new york university i would like to express my appreciation to wassily leontief william baumol m i nadiri mark schankerman martin baily and andrew sharpe for helpful comments and to the division of information science and technology of the national science foundation for financial support

the explicit economics of knowledge codification and tacitness this paper attempts a greater precision and clarity of understanding concerning the nature and economic significance of knowledge and its variegated forms by presenting the skeptical economist s guide to tacit knowledge it critically reconsiders the ways in which the concepts of tacitness and codification have come to be employed by economists and develops a more coherent re conceptualization of these aspects of knowledge production and distribution activities it seeks also to show that a proposed alternative framework for the study of knowledge codification activities offers a more useful guide for further research directed to informing public policies for science technological innovation and long run economic growth copyright 2000 by oxford university press

the impact of outsourcing on the transaction costs and boundaries of manufacturing abstract this paper discusses the concept of outsourcing along with an account of the economic benefits that are achieved by reconfiguring the organization and reducing the transaction costs of providing products and services with the practice of outsourcing experiencing exceptional growth this paper examines the corresponding change decline in uk manufacturing as an economic activity and considers how the economic benefits of outsourcing alter the contribution that an organization makes to a sector s gross domestic product to assess this issue an input output methodology for measuring economic restructuring in uk manufacturing is presented

effects of ancestral populations on entrepreneurial founding and failure private liquor stores in alberta 1994 2003 until 1993 all liquor stores in the canadian province of alberta were government owned and run in the fall of 1993 the provincial government exited liquor retailing all government stores were shut down and entrepreneurs were allowed to open private liquor stores in this article we take advantage of this abrupt regulatory change in the alberta liquor retailing industry to address two related issues that have received little empirical attention first we investigate how an ancestral population affects processes of legitimation and competition while density dependence theory predicts that legitimation effects outweigh competitive effects at low levels of density will this be the case when a new population replaces a similar ancestral one second beyond density dependence we investigate how ancestral populations affect the locations of new entrepreneurial ventures will entrepreneurs follow ancestral location patterns and will these ancestral locations confer survival advantages to answer these questions we map all private liquor stores on the street map of calgary alberta s largest city from 1994 to 2003 and analyze store founding and failure we use our results to draw implications for theories of density dependence entrepreneurial behavior and industry spatial structure copyright 2011 the author 2011 published by oxford university press on behalf of associazione icc all rights reserved oxford university press

innovation spending and productivity growth in the german economy 1980 1986 a newly developed technique involving vertically integrated input output sectors is used to examine the relationship between labour productivity and innovation expenditures in the german economy during the period 1980 to 1986 the productivity measures used dubbed harrod robinson read hrr take into account the direct and indirect labour used in each consumption goods sector included in these measures is the labour content of new capital investment the hrr measures show higher rates of productivity growth in most sectors compared to the simple direct labour requirements measures this is due to the fact that the hrr measures take into account the increased efficiency with which new capital is produced the second part of the study examines the relationship between labour productivity and innovation expenditures as measured by the ifo institute for economic research munich innovation survey using cross section data for 58 german industries a strong correlation was found between direct labour pr

the deindustrialisation tertiarisation hypothesis reconsidered a subsystem application to the oecd7 the diffusion of outsourcing both national and international and vertical fdis among manufacturing firms along with the higher integra tion of business services in manufacturing has recently led to question the empirical evidence supporting the deindustrialisation tertiarisation dt hypothesis rather than a real phenomenon it has been argued dt would be an apparent one mainly due to the reorganization of production across national and sectoral boundaries the empirical studies that have dealt with the topic so far have not been able to effectively rule out such possibility because of two main limitations the sectoral level of the analysis and or the national focus in order to overcome them the paper carries out an appreciative investigation of the actual extent of the dt occurred in the oecd area over the 80s and the 90s by moving from a sector to a subsystem perspective thus retaining both direct and indirect relations and by referring to a pseudo world of 7 oecd countries thus taking into account the global dimension of the phenomenon the results strongly support the dt hypothesis although the weight of business sector services in the manufacturing subsystem increased acting as a counterbalancing tendency to the manufacturing decline subsystem shares significantly decreased thus confirming dt as a more fundamental trend of modern economies

triggers of change structural trajectories and production dynamics the transformation of production structures has been at the centre of the historical dynamics of capitalist economies since the first industrial revolution the article concentrates on production processes as principal loci of structural economic dynamics along increasing and decreasing returns trajectories these trajectories are triggered by structural opportunities and constraints embedded in production systems and their historical realisation is subject to different institutional configurations production units at different levels of aggregation the approach envisioned suggests the possibility of governing economic dynamics by structural policies working on the technological and organisational conditions of production as well as on the configuration of production processes within production units capitalist economies have to rely on a mix of co ordination devices across different production units and aggregation levels for capturing structural opportunities and avoiding structural constraints

how significant is intersectoral outsourcing of employment in south africa south africa like many other middle income countries as well as most upper income countries has seen an increase in services and fall in manufacturing as shares of total employment there has been speculation about the extent to which these changes actually represent a genuine structural shift as opposed to a statistical artifact deriving from the domestic outsourcing of activities from manufacturing to services very limited evidence is available as to how much of the apparent changes in the sectoral composition of employment are explained by intersectoral outsourcing this article develops a methodology using household and labor survey data to analyze the extent of intersectoral outsourcing of specific labor intensive activities in south africa from 1997 2007 it is shown that the relatively high growth in services employment is driven by expansion of employment of cleaners and security guards and in particular by outsourcing type reallocation of these activities from manufacturing and the public sector toward private services once outsourcing is accounted for employment seems to have grown at similar rates in manufacturing and in private services the analysis has implications for understanding changes in the sectoral structure of middle income economies and whether services employment is as dynamic as it appears to be copyright 2010 the author 2010 published by oxford university press on behalf of associazione icc all rights reserved oxford university press

indivisible labor lotteries and equilibrium abstract this paper considers an economy where labor is indivisible and agents are identical although the discontinuity in labor supply at the individual level disappears as a result of aggregation it is shown that indivisible labor has strong consequences for the aggregate bahavior of the economy it is also shown that optimal allocations involve lotteries over employment and consumption

heterogeneity and aggregation implications for labor market fluctuations we demonstrate that aggregate employment and consumption can increase without a corresponding movement in productivity in a model with heterogeneous agents where the only aggregate disturbance is a productivity shock the interaction between incomplete capital markets and indivisible labor results in a low employment productivity correlation and creates a time varying wedge between the marginal rate of substitution for commodity consumption and hours and productivity our results caution against viewing the measured wedge as an inefficiency due to a failure of labor market clearing or as a fundamental driving force behind business cycles jel d31 e32 j22 j24 j31

structural change under new labour the paper examines specific features of structural change in the uk since 1997 contrasting the decline in industrial jobs with the rise in a variety of service jobs it examines the proximate causes of structural change in particular whether the chronically slow growth of manufacturing output in the 1980s has persisted the implications of this structural change are considered particularly the effects on the balance of payments and regional employment patterns the paper suggests that the main impact of government policies on regional employment may have been through the direct and multiplier effects of public expenditure

spatial growth and industry age between 1970 and 2000 employment growth across u s counties exhibited very different patterns in manufacturing and services whereas manufacturing employment growth was negatively related to initial manufacturing employment across the entire distribution of counties service employment growth was positively related to initial service employment for intermediate sized counties this paper presents a theory to rationalize these facts local sectoral growth is driven by technological diffusion across space and depends on the age of the sector the theory correctly predicts the relation between county employment growth and initial county employment in manufacturing at the turn of the 20th century

mesures de la croissance de la productivite dans un cadre d equilibre general l economie du quebec entre 1978 et 1984 the authors propose a new measure of total factor productivity tfp growth in a general equilibrium setting it measures by how much the efficiency frontier moves outwards given the availability of primary resources the technology and the structure of domestic final demand prices are endogenous the authors apply this new measure to the quebec economy between 1978 and 1984 they find negative tfp growth rates in most of the manufacturing industries and positive and relatively high growth rates in the service sectors aggregate annual tfp growth was 1 1 percent over this period

indivisible labor and the business cycle abstract a growth model with shocks to technology is studied labor is indivisible so all variability in hours worked is due to fluctuations in the number employed we find that unlike previous equilibrium models of the business cycle this economy displays large fluctuations in hours worked and relatively small fluctuations in productivity this finding is independent of individuals willingness to substitute leisure across time this and other findings are the result of studying and comparing summary statistics describing this economy an economy with divisible labor and post war u s time series

the effect of public sector employment on local labour markets this paper considers the impact of public sector employment on local labour markets using english data at the local authority level for 2003 2007 we find that public sector employment has no identifiable effect on total private sector employment however public sector employment does affect the sectoral composition of the private sector specifically each additional public sector job creates 0 5 jobs in the non tradable sector construction and services while crowding out 0 4 jobs in the tradable sector manufacturing when using data for a longer time period 1999 2007 we find no multiplier effect for non tradables stronger crowding out for tradables and consistent with this crowding out for total private sector employment

employment and hours over the business cycle abstract approximately one quarter of the adjustment in total hours of employment over the business cycle represents adjustments in hours while the remainder is explained by changes in employment real business cycle models characterize agents as either continuously adjusting their hours or making only labor force participation decisions about jobs with indivisible hours in this paper we extend the representative agent framework to allow for decisions on both participation and hours we calibrate and simulate a dynamic version of the model and show that it is better able to mimic some features of the aggregate data

heterogeneity in capital and skills in a neoclassical stochastic growth model does a heterogeneous agents version of a neoclassical model with labor leisure choice replicate the distributions of consumption and working hours observed in the cross sectional data does incorporating heterogeneity enhance the aggregate performance of the representative agent model we address these questions in a complete market model economy with two sources of heterogeneity initial endowments and non acquired skills we find positive answers to both questions

ex post heterogeneity and the business cycle abstract a temporary heterogeneity in individual skills is introduced in the indivisible labor model studied by rogerson 1984 and hansen 1985 and the model is calibrated and simulated the results suggest that heterogeneity may be a very important factor affecting the volatilities and comovements of output and other variables the results also show that the average quality variation of employed workers can be as much as 16 percent of the output volatility

a survey of the literature on human capital intensive firms the aim of this paper is to provide an exhaustive survey of the academic research dedicated to the study of human capital intensive firms hcifs we use a bibliometric analysis based on the three widely used databases econlit science direct and wiley over the period 1992 2015 we are adapting a methodology developed in previous works to our specific object of study and we generate a bottom up clustering on keywords titles and abstracts our examination of the data sheds a light on five main clusters of works that respectively focus on 1 critical human resource management 2 intellectual capital assessment 3 funding risk and innovation 4 high skilled employees supporting economic development and 5 internal and external valuable social networks in a critical appraisal of our results we stress that the bibliometric analysis remains silent on how the different clusters are linked with each other based on our own appreciation of the hcifs literature we propose a further step in the identification of a central question linking up these clusters a transversal review of the five clusters reveals that hcifs appear as a network of specialized agents whose complementary human resources are decisive for the value creation process

local multipliers at work we measure the effects of a substantial place based policy shock on the local labor market systems exploiting as an instrumental variable the peculiar information necessary to apply for capital subsidies in italy during the period 1996 2006 the results show the presence of positive multipliers in the south of italy slightly lower than what was previously found for the us but much higher than those identified for european and asian countries the reasons for this finding lie in the greater accuracy of the data in the relevance of the instrument used and in the widespread underutilization of production factors

knowledge dynamics structural change and the geography of business services the article provides a review of and presents some empirical evidence on the dynamics of knowledge structural change and spatial concentration of economic activities focusing on the case of business services it explores how the role of knowledge has evolved in relation to the dimensions of i science technology and structural change ii the long term processes of tertiarisation of the economy in particular the growth of business services iii the spatial concentration of business services as an outcome of the increasing volume and complexity of knowledge and the need to manage it through spatial proximity our arguments are supported by empirical evidence on the spatial concentration of business services in the european regions

environmental innovations in services manufacturing services integration and policy transmissions abstract this paper investigates the relevant factors behind the almost unexplored realm of environmental innovation in services using a dataset of 8161 italian service firms specifically we test whether manufacturing services integration matters for environmental innovations in addition taking account for the heterogeneity of the service industries we analyse whether environmental policies for manufacturing transmit induced innovation effects to services our findings show that i the drivers of environmental innovations related to carbon abatement and energy efficiency differ across industries and ii cooperation training environmental management systems and public funding play key roles in these processes the integration of services and manufacturing through push and pull effects and the environmental policy transmission effect from manufacturing to services generally do not seem to have a positive impact on the diffusion of environmental innovations

foreign direct investment and de industrialisation the purpose of this study is to discuss the various issues regarding de industrialisation and to systematically analyse the causes of this phenomenon in addition the effect of the recent increase in foreign direct investment on de industrialisation will be analysed unlike extant studies this study employs a more reliable method of estimation known as the generalised method of moments system for establishing the importance of foreign direct investment fdi with regard to de industrialisation for a general assessment of the different factors of de industrialisation including fdi this study classifies the causes of de industrialisation in oecd countries into external and internal factors as a result the analysis has proved that not only internal and external factors are major factors of de industrialisation fdi inflow and outflow are also major factors

running out of steam manufacturing in malaysia this article examines the process of deindustrialisation in developing countries looking at the case of malaysia it provides a framework to examine how industrial structure and domestic technological capabilities are affected by the wider challenges of late industrialisation changes in global accumulation and domestic class formations it discusses the emerging evidence of malaysia s premature deindustrialisation and how this is the result of broader accumulation strategies that were primarily driven by internal factors related to the emergence of a malay middle class and supported by changes in global accumulation processes related to the development of global production networks and financialisation

multinational enterprises service outsourcing and regional structural change this paper offers a joint analysis of two phenomena characterizing most advanced economies in recent decades the rise of foreign ownership in manufacturing activities and the pervasiveness of the service economy the aim of the study is to examine the structural transformation of regional economic systems within the uk by focusing on the role played by foreign multinational enterprises mnes in manufacturing in facilitating the development of services from a conceptual perspective this research relies on different strands of literature on the impact of foreign direct investment fdi on recipient economies on outsourcing and regional structural transformation and on the identification of local multipliers the empirical analysis focuses on a specific demand side channel for structural change the forward linkage established by foreign manufacturing mnes with local service providers through outsourcing descriptive evidence shows that service outsourcing by foreign plants operating in manufacturing is pervasive compared to outsourcing by their domestic counterparts on this basic premise we estimate the multiplicative effects that foreign manufacturing activity has on the creation of service jobs in local labour markets in order to produce reliable estimates of a local multiplier the methodology adopts an instrumental variable approach our findings suggest that foreign presence in manufacturing can be a catalyst of regional structural change by stimulating the generation of new jobs in the tertiary sector via demand linkages

sources of structural change in the united states 1963 78 an input output perspective a 400 sector input output framework is used in the decomposition of industry output change in the united states during the period 1963 78 into the portion att ributable to changes in the level and composition of final demands and the fraction attributable to changing input output coefficients the analysis concludes that for nearly 80 percent of the 400 industri es final demand changes account for the majority of output change the most rapidly growing and most rapidly declining sectors are among those most affected by coefficient change these results underscore the role of aggregate economic policy as a channel of any national industrial policy copyright 1987 by mit press

offshore outsourcing decision making a policy maker s perspective this research aims at finding the best governing policy for offshore outsourcing of business activities we use analytical network process a multicriteria decision making methodology to create the evaluation framework from the perspective of decision makers stakeholders and influence groups four policy options are evaluated with respect to approximately 50 economic political technological and other factors the model provides both long term and short term views of the outsourcing issue concerned to all parties the all inclusive approach helps policy makers to decide on the best policy and has the potential to ease tension between proponents and opponents of offshore outsourcing

sources of output change in china 1987 1997 application of a structural decomposition analysis since the beginning of the economic reforms implemented in the industrial sectors of china the economy has grown and changed rapidly the high gdp growth rates recorded since 1985 have stimulated unprecedented changes in the economic structure of this developing economy the major causes of the changes are the increase in consumption and investment production technological change and trade the objective was to analyse this type of structural change and to explore the sources of economic growth during the period 1987 1997 by using the method of structural decomposition analysis sda the chosen sda method based on the comparison between two input output tables allowed us to decompose each sector s and industry s output growth it enabled the relative impact of final demand and technological change of each industry on overall growthto be measured

a strategic needs perspective on operations outsourcing and other inter firm relationships abstract this paper considers two issues the formation of inter firm relationships and the choice of governance form these have been widely investigated in both the strategic management and operations management fields this paper contributes to the literature in three ways first we address why firms enter inter firm relationships by hypothesizing that managers enter them to pursue three strategic needs that is efficiency effectiveness knowledge learning and global market access our first contribution evidences the relationship between the above strategic needs and a number of operational objectives that managers normally pursue in an inter firm relationship second we hypothesize how the achievement of the above strategic needs influences the choice of governance form third we compare our framework with the operations management approach to strategic networks by evidencing similarities between the two approaches and showing that managers pursue a similar approach when they face inter firm agreement issues whether agreements are supply chain or strategy oriented we empirically test our framework using secondary data consisting of 95 inter firm agreements our findings largely support the theoretical predictions and also have important practical implications first our results offer managers practice suggestions on what kinds of objectives can be pursued together in inter firm relationships to achieve specific strategic needs and which governance form is most suitable depending on the strategic need in question second we consider the strategic reasoning concerning inter firm relationship management and some engineering issues such as time and quality objectives that while largely considered in the operations management literature are often neglected in the strategic management field

evaluation of the soft measures effects on ambient water quality improvement and household and industry economies abstract various ecological footprint calculators carbon footprint calculators and water footprint calculators have been developed in recent years the basic concepts of ecological behaviour record notebooks and of carbon dioxide emission calculators have been developed since the late 20th century the first carbon dioxide emission calculator was developed in 1991 likewise water pollutant discharge calculators have been developed to estimate the effects of soft measures introduced into households to reduce pollutant discharge since 2004 the soft measures which have been developed in japan may consist of a wider framework household sustainable consumption which has been developed in europe and can be referred to cleaner consumption in this research summarisation of the short history of ecological behaviour record notebooks and ecological footprint calculators in japan since the 1980s was conducted and the soft measures in households to reduce pollutant discharge were evaluated for their effects on ambient water quality improvement as well as household and industry economies effects of the soft measures on related industry economies were investigated using an input output table analysis and the effects of the imported goods were evaluated with an import effect matrix which was developed in this research the effects of the soft measures on household expenditures were estimated to be a decrease by 2 5 or usd 285 person 1 year 1 in 2003 2006 the results show that the soft measures positively affect the chemical fibre industry and significantly affect the detergent industry analysis of the import effect matrix proved that the six industries were tightly related through extensive amounts of imported goods the soft measures in households may lead to household sustainable consumption and thus reduce disadvantageous human impacts on water environments the effects of the measures introduced to improve the environment should be qualitatively and quantitatively evaluated to avoid redundant concerns and discord between the environment and the economy which may be worried when the relationship is not well understood

service competitiveness and urban innovation policies in the uk the implications of the london paradox wood p service competitiveness and urban innovation policies in the uk the implications of the london paradox regional studies the policy models currently employed in british cities to promote urban economic innovativeness and competitiveness echo national policies by being science manufacturing and technology based yet the most powerful driver of both modern uk economic success and regional and urban inequality has been london based innovation this does not depend on local technological initiatives but on labour intensive knowledge based processes especially within the financial and business services this paper examines the importance of service based innovation and competitiveness in the english urban system dominated by london and its implications for urban innovation policies these currently offer little support to other uk cities either in gaining from london s experience of service led success or challenging its dominance over the most innovative tradable services wood p les po

skill heterogeneity and the business cycle this paper extends the real business cycle framework to incorporate ex ante skill heterogeneity among workers consistent with the empirical evidence skilled and unskilled workers in the model face the same degree of cyclical variation in real wages although unskilled workers are subject to substantially higher procyclical variation in employment systematic cyclical changes in the average skill level of employed workers are shown to induce bias in standard aggregate measures of cyclical variation in the labour input productivity and the real wage the introduction of skill heterogeneity improves the model s ability to match the empirical correlation between total hours and the real wage but the correlation between total hours and labour productivity remains higher than it does in the data

explaining deindustrialization how affluence productivity growth and globalization diminish manufacturing employment1 this study analyzes why the world s most economically advanced countries have deindustrialized over the last few decades previous research focuses on three causal factors 1 rising consumer affluence and its propensity to increase demand for services more than for manufactured goods 2 faster productivity growth in the manufacturing sector relative to other sectors and 3 expanding trade linkages between the north and the south of the global economy the relative importance of these factors however is not fully understood because previous research has not tested all of these explanations simultaneously nor considered the indirect channels through which global trade may cause deindustrialization this study tests the three factors with two way fixed effects regression models and panel data on 18 oecd countries from 1970 to 2003 the results indicate that each factor makes significant contributions to deindustrialization and that global trade exerts both direct and indirect effects on employment

economic backwardness in political perspective government policies and institutions shape economic incentives and via this channel have a first order impact on economic development why then do many societies adopt policies that discourage investment and maintain institutions that cause economic backwardness perhaps politically powerful groups elites are not in favor of economic growth but why it would appear that economic growth would provide more resources for these groups to take over or tax increasing their economic returns so why don t powerful groups always support economic development in this paper we develop a theory of inefficient government policies and institutions all else equal politically powerful groups would welcome superior institutions and technologies but in practice all else is not equal because superior institutions and technologies may reduce their political power and make it more likely that they will be replaced at the center of our theory is therefore the idea that changes in institutions or the introduction of new technologies often create turbulence eroding the political advantages and future economic rents of incumbent elites alternatively new technologies may enrich competing groups increasing their threat to incumbents these considerations make politically powerful groups fear losing power and oppose economic and political change even when such change will benefit society as a whole to understand the mechanism at work and its potential applications consider a concrete example industrialization in the nineteenth century bairoch 1982 estimates that between 1830 and 1913 world manufacturing output increased by a factor of 5 see table 1 panel a nevertheless this process was highly uneven across regions and countries bairoch also calculates that over the same period manufacturing output in developed countries europe and north america increasedbyafactorofover10 whereasitdeclinedinthe third world among developed countries there were

the rise of domestic outsourcing and the evolution of the german wage structure the nature of the relationship between employers and employees has been changing over the past three decades with firms increasingly relying on contractors temp agencies and franchises rather than hiring employees directly we investigate the impact of this transformation on the wage structure by following jobs that are moved outside the boundary of lead employers to contracting firms we develop a new method for identifying outsourcing of food cleaning security and logistics services in administrative data using the universe of social security records in germany we document a dramatic growth of domestic outsourcing in germany since the early 1990s event study analyses show that wages in outsourced jobs fall by approximately 10 15 relative to similar jobs that are not outsourced we find evidence that the wage losses associated with outsourcing stem from a loss of firm specific rents suggesting that labor cost savings are an important reason firms choose to contract out these services finally we tie the increase in outsourcing activity to broader changes in the german wage structure in particular showing that outsourcing of cleaning security and logistics services alone accounts for around 9 of the increase in german wage inequality since the 1980s

location patterns of us industrial research mimetic isomorphism and the emergence of geographic charisma appold s j 2005 locational patterns of us industrial research mimetic isomorphism and the emergence of geographic charisma regional studies39 17 39 the emergence of new industrial spaces over the past several decades that have radically altered the economic geography of the usa raises questions about the mechanisms responsible for their formation existing theories predict either continued concentration or spatial dispersion none predicts the rise of new geographic agglomerations of establishments a behavioural theory of agglomeration formation explains the emergence of regionally dispersed local agglomerations by means of mimetic behaviour a method for detecting social influence in cross sectional data is applied to data on the 1985 locations by county of over 10 000 privately owned research laboratories to show that the theoretical model accurately reproduces a key aspect of the existing spatial pattern the results suggest that laboratories are to a significant extent reacting to each o

gray water and environmental externalities international patterns of water pollution through a structural decomposition analysis abstract despite regulatory measures restricting industrial and agricultural operations from pouring pollutants into lakes streams and rivers around 1 1 trillion m3 of wastewater were still disposed in waterways around the world in 2009 and this amount continues to grow several studies have analyzed the determinants of gray water increase at local level but so far none has explored them in an international context to highlight the role of global value added chains and the dichotomy between developed and developing nations in order to provide insights on the dynamics of water pollution worldwide this paper analyzes the main drivers of gray water discharge during the 1995 2009 period and the effort on reducing gray water compared to other environmental externalities based on the world input output database a structural decomposition analysis sda of gray water generation shows that domestic demand for food is the main driver of gray water changes in all countries while relocation of industrial activities to developing nations has disproportionally transferred this burden from developed countries manufacturing industries we highlight that while national policies should target water pollution from the agri food sector within each country water discharges from manufacturing sectors in global value chains need to be regulated from an international perspective besides the empirical evidence on water pollution drivers currently lacking in the environmental literature this paper also introduces a novel hybrid multiplicative additive sda that overcomes the issue of distributing large interaction terms in standard additive models and allows simulating mitigation scenarios it portrays the heterogeneity among sectors of how environmental abatement policies affect water and air pollution

labour productivity and energy intensity in australia 1974 87 an input output analysis abstract energy and labour productivity in australia is examined using the notion of vertical integration in an input output framework results indicate a decline in productivity growth rates during the 1978 1982 period for both energy and labour energy productivity growth was negative during this period the productivity slowdown was pronounced in the natural resource sectors agriculture food products and minerals results indicate that movements in primary input efficiency are positively correlated suggesting that input complementarity may override substitution effects during macroeconomic shocks

is environmental innovation embedded within high performance organisational changes the role of human resource management and complementarity in green business strategies abstract this paper investigates whether firms joint implementation of organisational innovation and training may foster their adoption of environmental innovation ei and if this correlation falls within porter hypothesis ph framework we study the relationship of complementarity between strategies of high performance work practices hpwp and human resource management hrm when ei adoption is the firms objective using an original dataset on 555 italian industrial firms regarding ei hpwp and hrm coherent with the last cis2006 2008 survey results show that sector specificity matter the only case in which strict complementarity is observed in organisational change concerns co 2 abatement a relatively complex type of ei but this is true only when the sample is restricted to more polluting and regulated sectors this evidence is coherent with the porter hypothesis complementarity related adoption of ei is an element of organisational change in firms that are subject to more stringent environmental regulations nevertheless the fact that strict complementarity is not a diffuse factor behind the adoption of all environmental innovation indeed does not come as a surprise at this stage in the development of green strategies the share of eco firms is still limited even in advanced countries that are seeking tools for a new competitiveness the full integration of eis within the internal capabilities and firm s own assets is far from being reached even in advanced and competitive industrial settings

the impact of surges in net private capital inflows on manufacturing investment and unemployment abstract we use local projection methods to examine the dynamic response of surges in net private capital inflows on the output and employment shares of manufacturing the investment output ratio and the unemployment rate high income countries are studied separately from emerging economies both from asia and latin america our sample covers the years from 1970 to 2010 we find that surges in high income countries do not magnify the trend toward deindustrialization however the persistent decline in the investment to gdp ratio and the rise in the overall unemployment rate suggest that surges may negatively affect longer run growth prospects and employment opportunities in these countries in middle income asian countries surges tend to induce deindustrialization in both output and employment in the medium run but they do not lower the investment to gdp ratio in middle income latin america surges speed up deindustrialization lower investment and raise economy wide unemployment

real business cycles in this paper we demonstrate how certain very ordinary economic principles lead maximizing individuals to choose consumption production plans that display many of the characteristics commonly associated with business cycles our explanation is entirely consistent with i rational expectations ii complete current information iii stable preferences iv no technological change v no long lived commodities vi no frictions or adjustment costs vii no government viii no money and ix no serial dependence in the stochastic elements of the environment we also provide a completely worked out example of the type of artificial economy we have in mind the time series properties of the example exhibit some major features of observed business cycles although this type of model may not be capable of explaining all of the regularities in actual business cycles we believe that it provides a useful well defined benchmark for assessing the relative importance of factors e g monetary disturbances

decomposing brazilian manufacturing industry dynamics in the mid 2000s macroeconomic factors and their sectoral impacts abstract the manufacturing industry s loss in participation phenomena called deindustrialization has been observed for the brazilian economy for a while and seems to have intensified from mid 2000s however the literature has not developed a consistent or integrated analysis of this process we have used a detailed simulation model to identify how macroeconomic factors such as exchange rate labor costs and household consumption have contributed to manufacturing dynamics our results indicate that the macroeconomic scenario explains a large portion of the manufacturing industry s participation loss the rise in households consumption and investment important factors in this period were responsible for dampening of the pressures coming from the currency appreciation and the workforce costs benefiting some industrial sectors but not avoiding the manufacturings participation loss

industrial dynamics and economic geography capasso m stam e and cefis e industrial dynamics and economic geography regional studies how do industries emerge and evolve over space in this special issue the fields of industrial dynamics and economic geography are brought together in order to achieve a richer and more fundamental understanding of the organization of industries over time and space than each of these fields could do separately firm heterogeneity at the micro level and industry composition of a region at the macro level provide important elements in the explanation of industry emergence and evolution over space history and space matter in the evolution of industries this special issue shows how and why