Producer Services, Manufacturing Linkages, and Trade
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 the panel midpoint, 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 cross-section, 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.
(This abstract was borrowed from another version of this item.)
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 8 (2008)
Issue (Month): 3 (December)
|Contact details of provider:|| Web page: http://springerlink.metapress.com/link.asp?id=105724|
References listed on IDEAS
Please 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.:
- Markusen, James R & Venables, Anthony J, 1997.
"The Role of Multinational Firms in the Wage-Gap Debate,"
Review of International Economics,
Wiley Blackwell, vol. 5(4), pages 435-51, November.
- Markusen, James R. & Venables, Anthony, 1996. "The role of multinational firms in the wage-gap debate," Discussion Papers, Series II 322, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
- Park, Se-Hark & Chan, Kenneth S., 1989. "A cross-country input-output analysis of intersectoral relationships between manufacturing and services and their employment implications," World Development, Elsevier, vol. 17(2), pages 199-212, February.
- Bhagwati, Jagdish N, 1984. "Why Are Services Cheaper in the Poor Countries?," Economic Journal, Royal Economic Society, vol. 94(374), pages 279-86, June.
- Hoekman, Bernard & Primo Braga, Carlos A., 1997.
"Protection and trade in services : a survey,"
Policy Research Working Paper Series
1747, The World Bank.
- Katouzian, M A, 1970. "The Development of the Service Sector: A New Approach," Oxford Economic Papers, Oxford University Press, vol. 22(3), pages 362-82, November.
- Baumol, William J. & Batey Blackman, Sue Anne & Wolff, Edward N., 1984.
"Unbalanced Growth Revisited: Asymptotic Stagnancy and New Evidence,"
84-02, C.V. Starr Center for Applied Economics, New York University.
- Baumol, William J & Blackman, Sue Anne Batey & Wolff, Edward N, 1985. "Unbalanced Growth Revisited: Asymptotic Stagnancy and New Evidence," American Economic Review, American Economic Association, vol. 75(4), pages 806-17, September.
- Francois, Joseph F, 1990. "Producer Services, Scale, and the Division of Labor," Oxford Economic Papers, Oxford University Press, vol. 42(4), pages 715-29, October.
- Arvind Panagariya, 1988. "A Theoretical Explanation of Some Stylized Facts of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 103(3), pages 509-526.
- James Markusen & Thomas Rutherford & David Tarr, 2005. "Trade and direct investment in producer services and the domestic market for expertise," Canadian Journal of Economics, Canadian Economics Association, vol. 38(3), pages 758-777, August.
- Markusen, James R, 1989. "Trade in Producer Services and in Other Specialized Intermediate Inputs," American Economic Review, American Economic Association, vol. 79(1), pages 85-95, March.
- Reinert, Kenneth A & Roland-Holst, David W, 1994. "Structural Change in the United States: Social Accounting Estimates for 1982-1988," Empirical Economics, Springer, vol. 19(3), pages 429-49.
- Francois, Joseph & Reinert, Kenneth A, 1995. "The Role of Services in the Structure of Production and Trade: Stylized Facts from a Cross-Country Analysis," CEPR Discussion Papers 1228, C.E.P.R. Discussion Papers.
- Robert C. Feenstra & Gordon H. Hanson, 1999. "The Impact of Outsourcing and High-Technology Capital on Wages: Estimates For the United States, 1979–1990," The Quarterly Journal of Economics, Oxford University Press, vol. 114(3), pages 907-940.
- Aaditya Mattoo, 2000. "Developing Countries in the New Round of GATS Negotiations: Towards a Pro-Active Role," The World Economy, Wiley Blackwell, vol. 23(04), pages 471-489, 04.
- Park, Se-Hark, 1989. "Linkages between industry and services and their implications for urban employment generation in developing countries," Journal of Development Economics, Elsevier, vol. 30(2), pages 359-379, April.
When requesting a correction, please mention this item's handle: RePEc:kap:jincot:v:8:y:2008:i:3:p:199-229. 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: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.