Define economic restructuring?
Introduction-
Economic restructuring is used to define the changes in the constituent parts of an economy in a very general manner.
In the western world, it is more often used to refer to the phenomenon of urban areas shifting from a manufacturing to a service sector economic base.
It has implications for the competitiveness of cities and regions and for the productive capacities.
This transformation affects the demographics such as-
1- Income distribution
2- Social hierarchy
3- Employment
4- Capital mobility
5- Informal economy
6- Public outlays
7- Nonstandard work
We find that restructuring stemmed largely from relative demand shocks and that of the elevated levels of permanent job destruction and the permanent layoffs were distinguishing the feautures of industry subject to the restructuring.
We also find that restructuring results in the destruction of the significant amount of the capital.
Step by step
Solved in 3 steps
