United Nations Conference on Trade and Development (UNCTAD)

................................................................................................................................................... 1 I. DE-INDUSTRIALIZATION ................................................................................................................... 1 II. QUANTIFICATION .............................................................................................................................. 5 Accounting for de-industrialization .................................................................................................. 6 North-South trade ............................................................................................................................. 8 III. THE UNITED STATES AND THE UNITED KINGDOM COMPARED.......................................................... 9 Production ......................................................................................................................................... 10 International trade ............................................................................................................................. 12 IV. FOCUS ON THE UNITED KINGDOM .................................................................................................... 16 The balance of payments................................................................................................................... 17 Strong and weak industries in United Kingdom manufacturing ...................................................... 20 The future ......................................................................................................................................... 22 V. CONCLUSION ..................................................................................................................................... 23 REFERENCES ............................................................................................................................................. 24 Charts 1 Share of manufacturing employment in Europe and North America ............................................... 2 2 Share of manufacturing employment in selected Asian countries ................................................... 2 3 Real output per head of population, 1960–2003 .............................................................................. 10 4 Manufacturing output and employment, 1960–2003 ....................................................................... 11 5 Manufacturing expenditure, output and trade balance: United Kingdom, 1985–2003 ..................... 12 6 Manufacturing expenditure, output and trade balance: United States, 1985–2003........................... 13 7 Manufacturing trade balances of developed countries ..................................................................... 14 8 Manufacturing trade balances of “Other developed” countries ........................................................ 14 9 Current account of the balance of payments: United States and United Kingdom, 1965–2003 .............................................................................. 15 10 Components of the United Kingdom balance of payments, 1970–2003........................................... 18 11 Invisibles components of the United Kingdom balance of payments, 1990–2003 .......................... 19 12 Invisibles components of the United States balance of payments, 1990–2003 ................................ 19 13 United Kingdom trade performance – manufacturing sectors, 1990–2003 ...................................... 21 Tables 1 Estimates of the share of manufacturing in employment, 1962–2002 ............................................. 7 2 Explaining de-industrialization, 1992–2002 .................................................................................... 8 3 United States and United Kingdom compared, 1990–2000 ............................................................. 16 4 Components of services and property income in the United Kingdom balance of payments .......... 20 DE-INDUSTRIALIZATION AND THE BALANCE OF PAYMENTS IN ADVANCED ECONOMIES Robert Rowthorn and Ken Coutts (Faculty of Economics, Cambridge University)