Industrial policy has returned to centre stage after decades of neglect or worse, yet its revival is deeply ambivalent. This chapter argues that effective and desirable industrial policies rests on the alignment of three mutually reinforcing conditions, namely, first, public measures shaping the...

Using French micro-data, we show that rapid structural transformation in densely populated cities is driven by the expansion of large tradable services firms and the departure of large manufacturing firms. This reallocation is accompanied by sharply rising house prices but without a compensating...

Emerging economies confront unprecedented challenges mobilizing finance for green industrial transitions while maintaining development trajectories. This paper examines implementation effectiveness across India, South Africa, Brazil, and Indonesia-major economies representing diverse political...

In order to address the demographically induced labour shortage, it is essential to attract and integrate foreign workers, particularly in the context of Germany's ongoing structural transformation. However, the example of the Saxony-Anhalt part of the central German mining district indicates...

This paper reviews Thailand’s progress in structural transformation and its recent slowdown. It examines the empirical drivers of structural transformation and quantifies their contributions, with the objective of informing policies to reinvigorate the process

Since 2016, Saudi Arabia’s Vision 2030 reforms have improved governance, business regulations, capital markets, the labor market, and the external sector, narrowing structural gaps with frontier economies and improving economic performance. This paper summarizes progress, estimates the output...

This paper studies the long-run effects of foreign tourism on local labor markets and economic development in advanced economies, using Italy as a case study. To isolate plausibly exogenous variation in tourist arrivals, I construct a shift-share measure that interacts changes in outbound...

Technologischer Wandel, darunter die Digitalisierung vieler Wirtschaftsbereiche, die Verschiebung von Märkten und nicht zuletzt die demografische Entwicklung prägten den beruflichen Strukturwandel in Mitteldeutschland in der letzten Dekade. Diese Entwicklung abzubilden ist das Ziel der...

In order to address the demographically induced labour shortage, it is essential to attract and integrate foreign workers, particularly in the context of Germany's ongoing structural transformation. However, the example of the Saxony-Anhalt part of the central German mining district indicates...

Deutschland hat eine massive Investitionsschwäche, welche die Produktivität dämpft, damit das Wirtschaftswachstum verringert und zunehmend den Wohlstand gefährdet. Doch nicht nur der Staat hat in der Vergangenheit zu wenig investiert. Ebenso investierten Unternehmen deutlich weniger als in...

Das deutsche Geschäftsmodell, geprägt durch eine industriebasierte, dienstleistungsergänzte, exportorientierte und regional balancierte Struktur, steht unter erheblichem Druck, Seit 2018 schrumpft die Industrieproduktion, während die Bruttowertschöpfung zwar stabil bleibt, jedoch stagniert,...

Policies aimed at supporting economically lagging regions have changed considerably in the past decades. This includes an increased link between innovation and regional policy, as well as more recently transformative policy. The WIR! Programme, funded by the Ministry of Research and Education in...

Die Bundesländer und die Arbeitsmarktregionen in Deutschland unterscheiden sich in ihrer Bevölkerungs- und Wirtschaftsstruktur, weshalb sie auch unterschiedliche Arbeitskräfteengpässe und -überhänge aufweisen. Aufgrund ihrer verschiedenartigen Entwicklungen werden auch künftig...

Die Weltwirtschaft steht im Frühjahr 2025 im Zeichen sich tiefgreifend ändernder geopolitischer und wirtschafts- politischer Rahmenbedingungen. Vor dem Hintergrund des Politikwechsels in den USA sind insbesondere in Europa, aber nicht nur dort, neue sicherheitspolitische Herausforderungen...

Die Dekarbonisierung der Wirtschaft wird zu einem zentralen Treiber des Strukturwandels auf dem deutschen Arbeitsmarkt. Im Untersuchungszeitraum 2014 bis 2019 hat sich dies noch nicht auf die Löhne besonders betroffener Beschäftigter ausgewirkt, wie eine empirische Analyse auf Basis der...

Understanding the structural change in catching-up regions and the spatial distribution of economic sectors is essential for designing comprehensive policy strategies to promote balanced economic development. This study examines the economic restructuring of the 11 central and eastern European...

Present land-use forms, such as former coal mines turned into lakes, solar parks, wind farms, mixed/test forests and biological (organic) agriculture, cater more for 'human wellbeing' orbuilding sustainable economies than to the overall ecological well-being of landscapes that include animals...

Die Debatte um internationale Wettbewerbsfähigkeit rückt die Produktivität erneut in den Fokus der Wirtschaftspolitik. Obwohl Österreichs Arbeitsproduktivität im europäischen Spitzenfeld liegt, folgt das Land dem globalen Trend eines rückläufigen Produktivitätswachstums. Die...

This working paper explores the role of collective bargaining in achieving a just transition, drawing on recent literature and a sample of 512 collective agreements. An in-depth study of six country case studies from various regions highlights key themes in just transition clauses, namely...

The environmental Kuznets curve postulates an inverted-U relationship between environmental degradation and economic growth. And economic growth has been synonymous with structural transformation. How do patterns of growth and structural transformation relate to carbon emissions? Based on data...

Under China's dual circulation strategy, traditional industries that are highly dependent on international supply chains face significant challenges requiring restructuring. This study develops a multi-scale analytical model that integrates the Global Trade Analysis Project (GTAP) with the...

We analyze the effects of international trade on structural change. We show a positive correlation between openness and the share of the agricultural sector for developing economies and present a model to rationalize this stylized fact. We built a two-sector model to compare the autarky and open...

Germany is at the onset of a profound structural change that will have a lasting impact on the dynamics of productivity and economic growth. Global megatrends such as changes in international trade, digitalisation, decarbonisation and demographic change will accelerate structural change and have...

The German labor market has undergone profound changes over the last decades. For a long time, the debate on structural change focused on the shift from manufacturing industries to services. This Weekly Report highlights that labor market changes are attributable to three developments: In...

We revisit the iconic Kuznets (1955) paper, which postulated a clear positive relationship between inequality and economic development in the early stages of structural transformation. Using a newly released global dataset on income inequality-the WIID Companion-we set out the stylized facts of...

This report summarises structural developments in EU labour markets from 1995 to 2024. In particular, it describes trends in occupational and sectoral employment at the Member State and aggregate EU levels - mainly the professionalisation and occupational upgrading of employment on the one hand...

This report summarises structural developments in EU labour markets from 1995 to 2024. In particular, it describes trends in occupational and sectoral employment at the Member State and aggregate EU levels - mainly the professionalisation and occupational upgrading of employment on the one hand...