Spatially uneven pace of deindustrialisation within a country

The declining share of manufacturing value-added, often referred to as ‘deindustrialisation’, is fast becoming a major concern for policymakers and academic researchers, especially in high-income countries. When compared with country-level analysis, however, regional-level analyses deindustrialisation within country are limited. This paper empirically examines how why the patterns uneven across regions country. analysis builds upon neoclassical trade model uses data Japan where both detailed output input available at regional industry levels non-manufacturing industries over last four decades. One findings that large variation attributable differences productivity price changes regions. In contrast, effect slowdown capital accumulation, partly from expansion foreign direct investment or offshoring, commonly appears not specific but spatial interdependence also only statistically significant nonnegligible terms its magnitude.