Mickiewicz, T.; Zalewska, A.; (2002) Deindustrialisation: lessons from the structural outcomes of post-communist transition. (Academic Working Paper Series 463). The William Davidson Institute: Michigan, US.

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Abstract

Theoretical and empirical studies show that deindustrialisation, broadly observed in developed countries, is an inherent part of the economic development pattern. However, post -communist countries, while being only middle-income economies, have also experienced deindustrialisation. Building on the model developed by Rowthorn and Wells (1987) we explain this phenomenon and show that there is a strong negative relationship between the magnitude of deindustrialisation and the efficiency and consistency of market reforms. We also demonstrate that reforms of the agricultural sector play a significant role in placing a transition country on a development path that guarantees convergence to EU employment structures.

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