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De-industrialisation
c) Protection and subsidies push just the wrong way.
a) As manufacturing continues to shrink in an economy, overall growth will increasingly depend on boosting productivity in services.
d) But those who would tackle this by subsidies or trade barriers are missing the point.
b) Policy should therefore focus on removing obstacles (such as trade barriers and regulation), to such productivity growth, and creating a labour market in which workers can move freely from factory employment to services.
e) De-industrialisation causes problems in economies unable to absorb the workers released by manufacturing.
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