IDEAS home Printed from https://ideas.repec.org/a/blg/journl/v9y2014i1p35-42.html
   My bibliography  Save this article

Industries In Central And Eastern Europe Are Making Strides Toward Servitization

Author

Listed:
  • BURNETE Sorin

    (Lucian Blaga University of Sibiu, Romania)

Abstract

This paper is intended to examine, without empirical evidence, the way industries in Central and Eastern Europe are heading toward convergence of knowledge-intensive sectors. Emboldened by European Union’s commitment to become the world’s most competitive entity, industries in the new member countries are phasing out low skilled labor-intensive activities such as subcontracting of final assembly, concomitantly trying to integrate skilled labor-intensive inputs in production. Following a powerful trend that is manifest in global manufacturing, firms in the region are endeavoring to enhance the value of their offerings by providing knowledge-intensive services in addition to physical products. Like in the case of trade in intermediate inputs, the producer service business is extending toward economies in Central and Eastern Europe mostly via East-West trade, outsourcing being the chief conveyance vehicle. However, unlike intermediate inputs, knowledge-intensive services are dependent to a lesser degree on foreign investment in physical capital but rather on host-countries’ self-induced technological and educational progress.

Suggested Citation

  • BURNETE Sorin, 2014. "Industries In Central And Eastern Europe Are Making Strides Toward Servitization," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 9(1), pages 35-42, April.
  • Handle: RePEc:blg:journl:v:9:y:2014:i:1:p:35-42
    as

    Download full text from publisher

    File URL: http://eccsf.ulbsibiu.ro/RePEc/blg/journl/913burnete.pdf
    Download Restriction: no

    More about this item

    Keywords

    servitization; outsourcing; human capital;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:blg:journl:v:9:y:2014:i:1:p:35-42. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mihaela Herciu). General contact details of provider: http://edirc.repec.org/data/feulbro.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.