Producer Services, Manufacturing Linkages, and Trade
Abstract
Working with a mix of panel data on goods and services trade for the OECD for 1994-2004, combined with social accounts data (i.e. data on intermediate linkages) for 78 countries benchmarked to 2001, we examine the role of services as inputs in manufacturing, with a particular focus on indirect exports of services through merchandise exports, and also on the related interaction between service sector openness and the overall pattern of manufacturing exports. From the crosssection, we also develop a set of stylized facts linking services to level of development and the density of intermediate linkages. We find significant and strong positive effects from increased business service openness (i.e. greater levels of imports) on industries like machinery, motor vehicles, chemicals and electric equipment, supporting the notion that off-shoring of business services may promote the competitiveness of the most skill and technology intensive industries in the OECD. Conversely, we find evidence of negative general equilibrium effects for sectors that are less service intensive.Download Info
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Paper provided by FIW in its series FIW Working Paper series with number 002.Length: 44
Date of creation: May 2007
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Handle: RePEc:wsr:wpaper:y:2007:i:002
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Related research
Keywords: Producer Services; Service Sector Openess; Manufacturing linkages; Trade in Services; Indirect export of Services; Manufacturing Sector;Other versions of this item:
- Joseph Francois & Julia Woerz, 2008. "Producer Services, Manufacturing Linkages, and Trade," Journal of Industry, Competition and Trade, Springer, vol. 8(3), pages 199-229, December.
- Joseph Francois & Julia Woerz, 2007. "Producer Services, Manufacturing Linkages, and Trade," Tinbergen Institute Discussion Papers 07-045/2, Tinbergen Institute.
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- L8 - Industrial Organization - - Industry Studies: Services
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Davide CASTELLANI & Valentina MELICIANI & Loredana Mirra, 2012. "The determinants of inward foreign direct investment in business services across european regions," Quaderni del Dipartimento di Economia, Finanza e Statistica 104/2012, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
- Joseph Francois & Ian Wooton, 2010.
"Market Structure and Market Access,"
The World Economy,
Wiley Blackwell, vol. 33(7), pages 873-893, 07.
- Joseph F. Francois & Ian Wooton, 2007. "Market structure and market access," Economics working papers 2007-06, Department of Economics, Johannes Kepler University Linz, Austria.
- Joseph Francois & Ian Wooton, 2008. "Market Structure and Market Access," CESifo Working Paper Series 2239, CESifo Group Munich.
- Francois, Joseph & Wooton, Ian, 2007. "Market structure and market access," Policy Research Working Paper Series 4151, The World Bank.
- Tommaso Ciarli & Valentina Meliciani & Maria Savona, 2012. "Knowledge Dynamics, Structural Change And The Geography Of Business Services," Journal of Economic Surveys, Wiley Blackwell, vol. 26(3), pages 445-467, 07.
- Shepotylo Oleksandr & Vakhitov Volodymyr, 2012.
"Impact of services liberalization on productivity of manufacturing firms: evidence from Ukrainian firm-level data,"
EERC Working Paper Series
12/01e, EERC Research Network, Russia and CIS.
- Oleksandr Shepotylo & Volodymyr Vakhitov, 2011. "Impact of services liberalization on productivity of manufacturing firms: evidence from Ukrainian firm-level data," Discussion Papers 45, Kyiv School of Economics.
- Lodefalk, Magnus, 2012. "The Role of Services for Manufacturing Firms’ Exports," Working Papers 2012:10, Örebro University, School of Business.
- Elisabeth M. Christen & Joseph Francois & Bernard Hoekman, 2012.
"CGE Modeling of Market Access in Services,"
Economics working papers
2012-08, Department of Economics, Johannes Kepler University Linz, Austria.
- Elisabeth Christen & Joseph Francois & Bernard Hoekman, 2012. "CGE modeling of market access in services," Working Papers 2012-13, Faculty of Economics and Statistics, University of Innsbruck.
- Christen, Elisabeth & Francois, Joseph & Hoekman, Bernard, 2012. "CGE modeling of market access in services," Policy Research Working Paper Series 6106, The World Bank.
- Alistair Dieppe & Stephane Dees & Pascal Jacquinot & Tohmas Karlsson & Chiara Osbat & Selin Özyurt & Igor Vetlov & Axel Jochem & Zacharias Bragoudakis & Dimitris Sideris & Patry Tello & Jean Charles , 2012. "Competitiveness and external imbalances within the euro area," Occasional Paper Series 139, European Central Bank.
- Markus Kelle, 2012. "Crossing Industrial Borders: German Manufacturers as Services Exporters," Development Working Papers 329, Centro Studi Luca d\'Agliano, University of Milano, revised 27 Mar 2012.
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- Shepotylo, Oleksandr & Vakhitov, Volodymyr, 2012. "Services liberalization and productivity of manufacturing firms : evidence from Ukraine," Policy Research Working Paper Series 5944, The World Bank.
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- Falk, Martin & Peng, Fei, 2011. "The increasing service intensity of European manufacturing," MPRA Paper 38600, University Library of Munich, Germany.
- Christen, Elisabeth & Francois, Joseph, 2010.
"Modes of Delivery in Services,"
CEPR Discussion Papers
7912, C.E.P.R. Discussion Papers.
- Elisabeth Christen & Joseph Francois, 2010. "Modes of Delivery in Services," Economics working papers 2010-08, Department of Economics, Johannes Kepler University Linz, Austria.
- Bianka Dettmer, 2012. "Business services outsourcing and economic growth: Evidence from a dynamic panel data approach," Jena Economic Research Papers 2012-049, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- Valentina Meliciani & Maria Savona, 2011. "The Determinants of Regional Specialisation in Business Services: Agglomeration Economies, Vertical Linkages and Innovation," SPRU Working Paper Series 193, SPRU - Science and Technology Policy Research, University of Sussex.
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