France is a case in point of the negative effects of deindustrialisation

France’s deindustrialisation is very advanced and offers a case in point of its highly negative effects: A fall in the proportion of skilled jobs, as manufacturing jobs are replaced by jobs in unsophisticated services; A fall in long-term growth due to a decline in productivity gains, given the high level of productivity in industry; A deterioration in foreign trade, even though this is not yet a problem in France thanks to the risk-free asset role played by French government bonds and the rise in the external surplus in services. The worst consequence of France’s deindustrialisation is probably the decline in the sophistication of the economy.