The turning point of regional deindustrialization in the U.S.: Evidence from panel and time-series data.

• Deindustrialization may emerge in both developed and developing countries. One dimension of the industrialization trend is regional deindustrialization in a country. • Analyzes inter-state deindustrialization trends in the U.S. by dividing states into three income level groups (high, middle, and low). • Determines the turning points of inter-state deindustrialization in the U.S. and the difference in the rate of deindustrialization. • Conducts both time-series and panel data methodology. • Results show that the phenomenon of premature deindustrialization, which is historically observed in developing countries at a very lower GDP per capita income levels than developed countries, might exist at the regional level even in a developed country. The phenomenon of deindustrialization may emerge in both developed and developing countries. Besides deindustrialization is observable in different regions of a country. This study analyzes inter-state deindustrialization trends in the United States (the U.S.) from 1977 to 2017 by dividing states into three income level groups (high, middle, and low). Instead of specifying the factors, we determine the turning points of inter-state deindustrialization and the difference in the rate of deindustrialization by applying both time-series and panel data methodology. The results suggest that the deindustrialization hypothesis is valid in 38 out of 50 states, DC, and the U.S. at the country level. Furthermore, our results show that deindustrialization curves in lower-income states reach a turning point at lower per capita income levels and at an earlier time-span compared to higher-income state groups. Our findings indicate that premature/early deindustrialization, which is commonly stated for developing countries in the literature is also valid for different regions in a developed country, the U.S. in our case. [ABSTRACT FROM AUTHOR]