GDP versus Manufacturing Output: Proof of Movement of Standardized Processes
MetadataShow full item record
Since the early 2000’s there has been a decline in the share of labor in manufacturing in most developed countries around the world. Using World Bank data sets that include information on rich, middle, and poor nations, we test the theory that as a manufacturing process becomes more standardized and requires less skill to produce, the process is moved to middle income nations. Statistics on wages, infant mortality, education and GDP are used to qualify the economic status of the nation as well as the abilities of the labor force. The evidence collected suggests that manufacturing moves away from countries with very low and very high GDP’s and moves toward countries that fall into the developing category.