Has Liberalization Strengthened the Link between Services and Manufacturing?
AbstractGlobalization and pressure from increased competition have led to splintering of in-house services from formerly integrated manufacturing firms in developed economies and, at the same time, to an increase in outsourcing of these same services. These two trends have caused a stronger linkage in services and manufacturing in economic data because services which were previously lumped with manufacturing are now recorded separately and, in a sense, given identity. The study tries to shed some light on this linkage in the Philippine case. Contrary to experiences of other countries, the contribution of services to growth in manufacturing decreased from the 1980s to the 1990s. The manufacturing sectors usage of services also declined from the first to the second period. This result suggests that the Philippines has caught the splintering trend quite late and is, perhaps, only now catching on that the available 1990s data have not yet been able to capture.
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Bibliographic InfoPaper provided by East Asian Bureau of Economic Research in its series Microeconomics Working Papers with number 22047.
Date of creation: Jan 2007
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globalization; splintering; Outsourcing; services-manufacturing link; growth accounting;
Other versions of this item:
- Pasadilla, Gloria & Liao, Christine Marie, 2007. "Has Liberalization Strengthened the Link between Services and Manufacturing?," Discussion Papers DP 2007-13, Philippine Institute for Development Studies.
- Gloria O. Pasadilla & Christine Marie M. Liao, 2007. "Has Liberalization Strengthened the Link between Services and Manufacturing?," Working Papers 4807, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
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