Original scientific paper
https://doi.org/10.1080/1331677X.2016.1235505
Deindustrialisation and productivity in the EU
Lorena Škuflić
Marko Družić
Abstract
This article is envisioned as a first step in a comprehensive
analysis of the European Union’s (EU) industrial base, designed to
inform the current debate, and future policy decisions regarding
deindustrialisation and reindustrialisation in the EU. We focus on
the study of deindustrialisation and productivity, to determine the
causes of deindustrialisation and its relation to productivity in the
EU, and whether it can be explained primarily as a natural process,
or alternatively as a negative economic trend. Our results indicate
that the main causes of deindustrialisation in the EU were shifting
demand patterns caused by rising GDP per capita, followed by
growing international trade which corroborates the hypothesis that
the process is natural. In the second part we take a closer look at
manufacturing productivity as an integral cause of deindustrialisation.
We analyse the impact of market dynamics, concentration and firm
size on manufacturing productivity, where we find evidence which
supports the conclusion that a higher level of market dynamics
increases productivity, while firm size and market concentration seem
to decrease industry productivity.
Keywords
EU; deindustrialisation; productivity
Hrčak ID:
171782
URI
Publication date:
22.12.2016.
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