"This article analyzes three possible hypotheses behind the deindustrialization in Sweden. The main conclusion is that deindustrialization is both a myth and a reality. There has been a decrease in manufacturing employment in both relative and absolute terms in the post-war period, and the share of nominal gdp has gone in the same direction. However, the high productivity growth in manufacturing has lead to an increase in its share of real gdp since the beginning of the 1990's. Using input-output analysis, it is shown that the loss of employed who work with satisfying final demand for manufactured goods is less pronounced than what is shown by official statistics. The explanation for this is a deeper interaction with the rest of the economy. This is particularly pronounced in relation to the knowledge intensive service sectors. Since the beginning of the 1990's this aspect has become even more important. The numbers of employed who, directly or indirectly, were involved in the production of manufactured goods did hardly decrease at all between 1995 and 2005. This period is actually the most manufacturing intensive since the 1960's. Some would define this as reindustrialization."

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