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Shift in the Importance of Consumption of Professional Services and Investments (GFCF) for Manufacturing Industries by R&D Intensity in Advanced Economies

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  • Anastasiia Alekhnovich
  • Leonid Anuchin

Abstract

The research revealed and analysed a trend, between 1995-2020, of a declining gross fixed capital formation (GFCF) to domestic value added in gross exports (DVA in Gross exports) ratio in manufacturing industries for most Advanced Economies, which occurred on the backdrop of increasing of intermediate consumption of professional services. Our model proves the partial substitution of GFCF with intermediate consumption of professional services in Advanced Economies due to the change of production operating model (value chain management in manufacturing industries), which is evidenced by high influence of the combined factor on the DVA in Gross exports. This substitution facilitates the upgrading of value chain by creation of backward and forward linkages for manufacturing industries, depending on their R&D intensity. Systemic and long-term nature of changes may reflect potential paradigm shift in Advanced Economies' production operating models.Â

Suggested Citation

  • Anastasiia Alekhnovich & Leonid Anuchin, 2024. "Shift in the Importance of Consumption of Professional Services and Investments (GFCF) for Manufacturing Industries by R&D Intensity in Advanced Economies," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 13(3), pages 38-53, September.
    • Handle: RePEc:rbs:ijfbss:v:13:y:2024:i:3:id:3670
    DOI: 10.20525/ijfbs.v13i3.3670
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    References listed on IDEAS

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    1. Anderson, James E. & Larch, Mario & Yotov, Yoto V., 2019. "Trade and investment in the global economy: A multi-country dynamic analysis," European Economic Review, Elsevier, vol. 120(C).
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