GLOBALIZATION AND DEINDUSTRIALIZATION - MYTH AND REALITY IN THE OECD

Has global integration adversely impacted workers in the US and Europe ? The expansion of trade and other linkages with the South has been bl amed for a multitude of ills in the North, including the contraction o f manufacturing employment. Utilizing panel data for OECD countries, t his paper examines the relationship between ''deindustrialization'' an d differential productivity growth, Dutch disease, human capital accum ulation and trade flows. Empirical results indicate there is a statist ically and economically significant link between imports from the Sout h and the manufacturing share of employment and real value added, even after controlling for other plausible causes of deindustrialization.