September 20, 2021
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The drivers of deindustrialization in advanced economies: A hierarchical structural decomposition analysis

Publicated to: Structural Change and Economic Dynamics. 58 138-152 - 2021-09-01 58(), DOI: 10.1016/j.strueco.2021.04.009

Authors:

Liboreiro, PR; Fernández, R; García, C
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Affiliations

Univ Complutense Madrid, Complutense Inst Int Studies, Finca Mas Ferre, Edificio A,Campus Somosaguas,Entrada 3, Madrid 28223, Spain - Author
Univ Politecn Madrid, ETSI Caminos Canales & Puertos, C Prof Aranguren 3, Madrid 28040, Spain - Author

Abstract

The participation of manufacturing in the GVA of many advanced economies is continuously decreasing. The purpose of this work is to contribute to the dialogue around the drivers of such trend. In order to do so, we use input-output analysis for decomposing the variation in the manufacturing share as the sum of the effects of the variation of various possible drivers of deindustrialization: prices, domestic demand, technology and external trade; and we calculate these effects through a dynamic-hierarchical structural decomposition analysis. As a result of the analysis, we identify certain regularities: (a) variations in prices and domestic demand are the two most important factors explaining deindustrialization; (b) a process of substituting domestic production by imports also contributes to deindustrialization; (c) exports make a positive contribution to the participation of manufactures in the GVA but, after the 2008 crisis, this contribution does not offset the negative contribution of substitution by imports. (c) 2021 Published by Elsevier B.V.
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Keywords

Decomposition analysisDeindustrializationDemand analysisGrowthHsdaImportInput-outputInput-output analysisLawManufacturingPrice dynamicsProductivityStructural change

Quality index

Bibliometric impact. Analysis of the contribution and dissemination channel

The work has been published in the journal Structural Change and Economic Dynamics due to its progression and the good impact it has achieved in recent years, according to the agency WoS (JCR), it has become a reference in its field. In the year of publication of the work, 2021, it was in position 52/381, thus managing to position itself as a Q1 (Primer Cuartil), in the category Economics.

From a relative perspective, and based on the normalized impact indicator calculated from World Citations provided by WoS (ESI, Clarivate), it yields a value for the citation normalization relative to the expected citation rate of: 1.2. This indicates that, compared to works in the same discipline and in the same year of publication, it ranks as a work cited above average. (source consulted: ESI Nov 13, 2025)

Specifically, and according to different indexing agencies, this work has accumulated citations as of 2026-04-27, the following number of citations:

  • WoS: 13
  • Scopus: 12
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Impact and social visibility

From the perspective of influence or social adoption, and based on metrics associated with mentions and interactions provided by agencies specializing in calculating the so-called "Alternative or Social Metrics," we can highlight as of 2026-04-27:

  • The use, from an academic perspective evidenced by the Altmetric agency indicator referring to aggregations made by the personal bibliographic manager Mendeley, gives us a total of: 30.
  • The use of this contribution in bookmarks, code forks, additions to favorite lists for recurrent reading, as well as general views, indicates that someone is using the publication as a basis for their current work. This may be a notable indicator of future more formal and academic citations. This claim is supported by the result of the "Capture" indicator, which yields a total of: 29 (PlumX).

With a more dissemination-oriented intent and targeting more general audiences, we can observe other more global scores such as:

  • The Total Score from Altmetric: 3.
  • The number of mentions on Wikipedia: 2 (Altmetric).

It is essential to present evidence supporting full alignment with institutional principles and guidelines on Open Science and the Conservation and Dissemination of Intellectual Heritage. A clear example of this is:

  • Assignment of a Handle/URN as an identifier within the deposit in the Institutional Repository: https://oa.upm.es/90477/
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Leadership analysis of institutional authors

There is a significant leadership presence as some of the institution’s authors appear as the first or last signer, detailed as follows: First Author (RODRIGUEZ LIBOREIRO, PABLO) .

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Project objectives

El presente estudio tiene como objetivo principal contribuir al análisis de los factores que impulsan la desindustrialización en economías avanzadas. Se busca analizar la variación en la participación del sector manufacturero en el valor añadido bruto mediante un análisis de insumo-producto. Se pretende descomponer dicha variación en los efectos atribuibles a precios, demanda interna, tecnología y comercio exterior. Además, se pretende calcular estos efectos utilizando un análisis dinámico y jerárquico de descomposición estructural. Finalmente, se busca identificar regularidades en la influencia relativa de estos factores, especialmente en el contexto posterior a la crisis de 2008, para comprender mejor las dinámicas de desindustrialización.
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Most relevant results

El estudio analiza los factores que impulsan la desindustrialización en economías avanzadas mediante un análisis dinámico y jerárquico de descomposición estructural. Los resultados más relevantes son: (1) las variaciones en precios y demanda interna son los dos factores principales que explican la desindustrialización; (2) la sustitución de producción doméstica por importaciones contribuye negativamente a esta tendencia; (3) las exportaciones aportan positivamente a la participación manufacturera en el VAB, aunque tras la crisis de 2008 esta contribución no compensa el efecto negativo de las importaciones; (4) el estudio fue publicado en 2021 por Elsevier B.V.
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