Changes in sectoral structure and spatial distribution in Europe: Where has the de-industrialisation process stalled?

Abstract

De-industrialisation in Western countries in the second half of the 20th century has been a manifestation of the post-industrial era when jobs have increasingly moved from the primary and secondary sectors to services and knowledge-intensive sectors. The significant spatial relocations can be explained as the result of manufacturing path dependence and the internationalisation strategies of the largest industrial manufacturers. Therefore, the main goal of the article is to identify the sectoral changes in the secondary and knowledge-intensive sectors over the past 20 years and the spatial concentrations of industrial production in the European Union area. The new Index of Sectoral Specialisation is proposed to verify the hypothesis that evolution brings about structural changes, the decline of older sectors and the promotion of new ones. The relationship between the economic advancement of a country and the economic structure set in higher sectors has been demonstrated. However, several regions and countries still maintain a higher level of manufacturing and this delayed de-industrialisation progress is evident in a relatively compact area in Central Europe. This raises the question of whether remaining in industrial employment can still be an advantage for some regions. The analysis has shown industrial regions in Germany, Central and Eastern Europe to be more resilient, as they recovered more quickly from the world financial crisis in 2007 compared to the regions dominated by the service sector.