Deindustrialization paths and growth models: Germany and Spain in comparative perspective

  1. Casaú, Miguel Ángel 2
  2. Herrero Alba, Daniel 1
  1. 1 Universidad Complutense de Madrid
    info

    Universidad Complutense de Madrid

    Madrid, España

    ROR 02p0gd045

  2. 2 Universidad Autónoma de Madrid
    info

    Universidad Autónoma de Madrid

    Madrid, España

    ROR https://ror.org/01cby8j38

Revista:
LEM Working Paper Series

ISSN: 2284-0400

Año de publicación: 2024

Páginas: 1-32

Tipo: Documento de Trabajo

GOOGLE SCHOLAR lock_openDocta Complutense editor

Otras publicaciones en: LEM Working Paper Series

Resumen

This paper investigates the deindustrialization process in Germany and Spain from1995 to 2018. It is argued that the deindustrialization trajectories of each country are partiallyrelated to their growth models. An analysis in two steps is conducted. First, using the OECDinput-output tables, a Hierarchical Structural Decomposition Analysis is applied, and the variationin the manufacturing value-added share is decomposed into five deindustrialization drivers:income, investment, relative prices, outsourcing and globalization. Second, building on thegrowth model perspective, an interpretative framework to analyze the evolution of the fiveabovementioned drivers is presented. The interaction between institutions, aggregate demand andthe economic structure is explicitly considered in this framework. The comparative study of theGerman and Spanish cases and the distinction between the pre- and post-crisis periods illustratesthe consequences of the distinct growth models (and the economic policies on which they aregrounded) on structural change. The results suggest that the evolution of the deindustrializationdrivers (and thus the manufacturing value-added share) in both countries is well-explained bytheir specific fiscal, labor, and industrial policies.

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