Abstract
The transformations of growth regimes have proceeded with industrial structural changes in the increasing economic interdependence of European and East Asian countries. Most of the European economies have experienced de-industrialization as a long-term industrial structural change since the 1970s. De-industrialization is usually defined as a relative decline in output and employment in the manufacturing industry. This phenomenon has been observed universally, not only in European economies but in other advanced economies as well. In Japan, in particular, de-industrialization has accelerated rapidly since the 1990s amid institutional changes in the domestic economy and structural changes in international economic relations with other Asian countries in the process of Asian economic integration. In Europe, de-industrialization has exhibited different patterns with the evolving diversity and interdependence of European capitalisms in the process of European integration.
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Notes
- 1.
The growth pattern differs from country to country, depending on the specific institutional arrangements involved. In the Japanese case, “profit-led growth” played a leading role in the high economic growth in the 1960s, and “export-led growth” became dominant after the 1980s (Uemura 2000, 2012; Uemura et al. 2016).
- 2.
As for the study of the patterns of regional integration by using WIOD , Baldwin and Lopez-Gonzalez (2013) is an important foundation.
- 3.
De-industrialization has also occurred with “business-related services” in South Korea (export- and innovation-led capitalism). For the Korean pattern of de-industrialization, see Ok (2016). This study examines the determining factor of de-industrialization in Korea, focusing on the increase in service intermediate outsourcing for the purpose of cost-saving, which has a negative productivity effect on the Korean economy . Therefore, a comparative analysis of de-industrialization among the German, Japanese, and Korean patterns is an interesting research topic. As for the Japanese pattern, see Tahara (2009, 2010), Tahara and Uemura (2014), Uemura and Tahara (2014).
- 4.
The WIOD data are calculated in dollars, so we convert them into data in real terms. The conversion procedures are explained in the Appendix at the end of this paper.
- 5.
After the Euro was established, the trade imbalance expanded between Germany and southern European counties expanded rapidly. In this situation, the Euro system made de-industrialization accelerate, causing severe unemployment problems, in the southern European economies (see Boyer 2013). De-industrialization has been influenced strongly by the currency system in Europe.
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Appendix: Method of Converting WIOD Data to Real-Term Data
Appendix: Method of Converting WIOD Data to Real-Term Data
World Input-Output Database (WIOD) used in the analysis comprises nominal data in dollars. The only real-term data available are World Input-Output Tables (WIOTs) in previous year prices (PYP). The PYP data is not suitable for the purpose of the input-output analysis in this chapter. To conduct our time-series analysis of industrial structural change, we convert the WIOD data to real-term data by utilizing the exchange rate of each country and an output deflator for each industrial sector. The exchange rate data are taken from the WIOD (2013, 2016), and the deflators for outputs and intermediate inputs in each industry are provided by Socio-Economic Accounts (SEA) and the WIOD. The SEA deflators are compiled for the values in each column, causing discrepancies in the values in each row. Therefore, we use the “double inflation method” to adjust for this gap in values.
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Uemura, H., Tahara, S. (2018). The Evolving Diversity and Interdependence of Growth Regimes and De-industrialization in European Countries and Japan. In: Boyer, R., Uemura, H., Yamada, T., Song, L. (eds) Evolving Diversity and Interdependence of Capitalisms. Evolutionary Economics and Social Complexity Science, vol 11. Springer, Tokyo. https://doi.org/10.1007/978-4-431-55001-3_5
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