Globalisation and manufacturing employment
In the large OECD countries where manufacturing employment has declined markedly (e.g. the United States, France and Italy), globalisation (the opening of trade with emerging countries) is often put forward as the reason for manufacturing job losses, and there are calls for de-globalisation and industrial onshoring. But can globalisation be blamed for the manufacturing job losses, and in what proportion? There are other possible explanations for the decline in manufacturing employment: Simply technological progress and manufacturing productivity gains; Market share losses not against emerging countries, but against other advanced OECD countries. We see that the decline in manufacturing employment is mainly explained (on average 73%) by technological progress and productivity gains.