A Comparative Study Of Deindustrialization Between Developed And Developing Countries

Historically,the manufacturing industry has been long played an important role in promoting the productivity and income levels in economic development.However,since the 1970 s,the share of manufacturing output and employment in developed countries has been declining,which is also known as deindustrialization.According to the general law of economic development,deindustrialization only occur after the completion of industrialization,when the per capita income level is higher and industrial capital goods have a higher competitive advantage.But the reality is that the economic phenomenon of deindustrialization is also occurring in many developing countries.After the 2008 world financial crisis,developed countries represented by the United States,put forward a reindustrialization strategy to encourage the return of manufacturing jobs after long years of deindustrialization.However,in the context of the reindustrialization of developed countries,many developing countries,including China,are experiencing relatively obvious deindustrialization,which has to arouse our thinking and vigilance.Therefore,this paper discusses the changes and similarities and differences of industrial structure between developed and developing countries from the perspective of deindustrialization,and tries to conduct comparative research on the deindustrialization phenomenon between developed and developing countries on this basis,so as to provide enlightenment for China and other developing countries.This article adopts research methods that combine induction and deduction,qualitative and quantitative.First of all,this paper analyzes the relevant literature on deindustrialization at home and abroad to determine the basic framework of this paper.Then,developed and developing countries in G20 countries are taken as research objects to compare and analyze the similarities and differences of their industrial structure changes and their different influences from two aspects of output value and employment.The comparative study shows that :(1)With the increase of per capita income,the share of added value of agriculture and industry and the share of employment decline,while the share of added value of service industry and the share of employment rise in both developed and developing countries.(2)In the case of deindustrialization in developed countries,the per capita GDP and industrial added value account for a relatively high proportion,while in the case of deindustrialization in developing countries,the per capita GDP and industrial added value account for a relatively low proportion compared with developed countries;(3)The proportion of industrial added value in developed countries declines slowly along with the per capita income,while developing countries declines rapidly or even in a straight line,showing the characteristics of rapid deindustrialization;(4)Deindustrialization has exerted varying degrees of influence on the industrial structure,economic development,balance of international payments and industrial efficiency of both developed and developing countries.However,premature deindustrialization has a greater and deeper impact on developing countries,and industrial manufacturing industry is still the basis of economic operation and the source of wealth creation.In the empirical analysis,this paper uses the panel data of 19 developed and developing countries in G20 countries from 1991 to 2018 to conduct classified regression.The regression results show that :(1)The industrial employment and per capita GDP of both developed and developing countries show an inverted "U" shape,that is,both have undergone the process of industrial adjustment from industrialization to deindustrialization,but the per capita GDP of developing countries is lower than that of developed countries.(2)After adding the third term of per capita GDP,both developed and developing countries show an "N" type with the first term being positive,the second term being negative,and the third term being positive,that is,they have to undergo industrialization,deindustrialization and reindustrialization.(3)The improvement of industrial labor productivity will reduce industrial employment,but developed countries are more vulnerable to the reduction of industrial employment brought by the improvement of industrial labor productivity than developing countries;(4)Compared with income growth and labor productivity,international trade has little impact on industrial employment,and the expansion of international trade is more likely to reduce industrial employment in developed countries.In terms of other factors,the increase of fixed investment will increase industrial employment,while the increase of urbanization rate will reduce industrial employment in developed countries,but improve industrial employment in developing countries.A fast GDP growth is of positive significance to the promotion of industrial employment in developed countries.Based on the above theory and empirical analysis,this paper argues that the economic phenomena of deindustrialisation in all developed countries and developing countries,while developing countries to industrial compared with developed countries is too early to industrialization,but manufacturing development both in developed and developing countries plays an important role.Finally,this paper argues that developing countries should continue to attach importance to the development of manufacturing industry,increase industrial investment,and consolidate the fundamental position of manufacturing industry.Strengthen international cooperation,actively innovate,improve labor productivity and pay attention to the rationalization of industrial structure;Introduce relevant economic policies to prevent the negative impact of premature deindustrialization on domestic industry.The policy Suggestions for China's current economic development are as follows :(1)Actively consolidate the fundamental position of manufacturing industry and increase independent industrial innovation;(2)Promote the integrated development of advanced manufacturing and service industries;(3)Continuously to promote structural deindustrialization and promote industrial transfer;(4)Alert the trend of premature deindustrialization,pay attention to the coordinated development of regional economy and industry.