• Outline

Deindustrialization – which can be defined as the decrease in contribution to total employment and GDP by the manufacturing industry – has been a major cncern for most of the developed countries in North America and Europe. The purpose of this presentation is twofold. First, we would like to asses whether Japan and Korea, two countries known as manufacturing superpowers, are experiencing deindustrialization and to what extent. Second, we try to identify the mechanisms behind industrial dynamics in these two countries and whether deindustrialization could be detrimental for them in terms of GDP growth potential or social outcomes.

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