Deindustrialization and tertiarization. Progress towards an increasing service-industry integration

Employment in the industrial sector has decreased in all advanced countries, even though the sector's share in the gross domestic product (GDP) has not changed or has decreased only slightly in many cases, mostly because of improvements in labour productivity. Simultaneously, services have not stopped growing, reaching a share in developed economies of around 75%, sometimes higher, both in employment and contribution to nominal GDP. These processes have been the subject of extensive literature developed on the concepts of "deindustrialization" and "tertiarization", and on their possible explanations. Though delayed, these two far-reaching trends have taken, or are taking place, also in countries classified as middle-income or developing countries, giving rise to the concept of "premature deindustrialization". Various explanations have emerged around these issues, all of which have qualified the two major trends as worrisome. A common explanation suggests an industry-services contrast, where the trade-off between them appears as "the villain of the story"-borrowing an expression from the traditional theatre. This paper aims to show that this view is oversimplifying and wrong. What is observed in almost all