January 2008
·
57 Reads
·
81 Citations
This paper provides empirical evidence on the changing nature of manufacturing in OECD countries, including the continued loss of employment in the manufacturing. It examines the extent to which manufacturing output and employment are declining in OECD countries and explores possible causes, including increased productivity, slow growth in demand for manufacturing products, loss of markets to imports, statistical and classification issues, and so on. The paper finds that the share of manufacturing in OECD economies is declining and argues that this is likely to continue. It also presents evidence pointing to an increased blurring of the distinction between manufacturing and services. Furthermore, it notes that manufacturing is becoming more and more integrated at the global level. Finally, it noted that although manufacturing production is declining in OECD countries, innovation in this sector continues to be dominated by OECD countries. The paper is a contribution to an OECD project on global value chains, and will also contribute to OECD work on globalisation and structural change.