IDEAS home Printed from https://ideas.repec.org/b/wfo/wstudy/34225.html
   My bibliography  Save this book

Producer Services and Competitiveness of Manufacturing Exports

Author

Listed:
  • Yvonne Wolfmayr

Abstract

The paper examines the role of service inputs in shaping the competitiveness of the manufacturing sector. It first estimates an export market share function of 18 manufacturing industries for 16 OECD-countries over the period 1995 to 2000. The service linkage variables are derived from Input-Output tables. The results point to a positive and highly significant impact of international service linkages in high-skilled, technology-driven industries that explains about 40 percent of the overall increase in the market share. While there is a clear differential impact across the different types of (consuming) manufacturing industries, the type of service input is not relevant. The second part of the paper estimates the impact of outsourced services as well as in-house services on total factor productivity growth in Austrian manufacturing, based on an approach suggested by Feenstra – Hanson (1999). The results suggest a positive and significant impact of services outsourcing on TFP growth that is higher in the high-skilled intensive manufacturing industries. In contrast to the findings for export market shares, the distinction between the types of service inputs is highly relevant for the results on TFP growth, which stresses the role of knowledge intensive business services (KIBS) as important producers and transmitters of technology, innovations and knowledge (technological and knowledge spillovers). The impact of in-house services could not be precisely estimated.

Suggested Citation

  • Yvonne Wolfmayr, 2008. "Producer Services and Competitiveness of Manufacturing Exports," WIFO Studies, WIFO, number 34225, April.
    • Handle: RePEc:wfo:wstudy:34225
    as

    Download full text from publisher

    File URL: https://www.wifo.ac.at/wwa/pubid/34225
    File Function: abstract
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Carlin, Wendy & Glyn, Andrew & Van Reenen, John, 2001. "Export Market Performance of OECD Countries: An Empirical Examination of the Role of Cost Competitiveness," Economic Journal, Royal Economic Society, vol. 111(468), pages 128-162, January.
    2. Hannes Leo, 1999. "Die Innovationsaktivitäten der österreichischen Wirtschaft. Band 1: Produzierender Sektor. Kurzfassung," WIFO Studies, WIFO, number 19769, April.
    3. Michael Peneder, 2003. "Industry Classifications: Aim, Scope and Techniques," Journal of Industry, Competition and Trade, Springer, vol. 3(1), pages 109-129, March.
    4. Egger, Peter & Pfaffermayr, Michael & Wolfmayr-Schnitzer, Yvonne, 2001. "The international fragmentation of Austrian manufacturing: The effects of outsourcing on productivity and wages," The North American Journal of Economics and Finance, Elsevier, vol. 12(3), pages 257-272, November.
    5. Hannes Leo, 1999. "Die Innovationsaktivitäten der österreichischen Wirtschaft," WIFO Studies, WIFO, number 7712, April.
    6. Daniela Di Cagno & Valentina Meliciani, 2005. "Do inter-sectoral flows of services matter for productivity growth? an input/output analysis of OECD countries," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(3), pages 149-171.
    7. Sourafel Girma & Holger Görg & Mauro Pisu, 2016. "Exporting, linkages and productivity spillovers from foreign direct investment," World Scientific Book Chapters, in: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT Volume 53: World Scientific Studies in International Economics, chapter 10, pages 191-211, World Scientific Publishing Co. Pte. Ltd..
    8. Mary Amiti & Jozef Konings, 2007. "Trade Liberalization, Intermediate Inputs, and Productivity: Evidence from Indonesia," American Economic Review, American Economic Association, vol. 97(5), pages 1611-1638, December.
    9. Wolff, Edward N., 1995. "Technological change, capital accumulation, and changing trade patterns over the long term," Structural Change and Economic Dynamics, Elsevier, vol. 6(1), pages 43-70, March.
    10. Mattoo, Aaditya & Javorcik, Beata & Arnold, Jens, 2006. "Does Services Liberalization Benefit Manufacturing Firms?," CEPR Discussion Papers 5902, C.E.P.R. Discussion Papers.
    11. Thijs Raa & Edward Wolff, 2001. "Outsourcing of Services and the Productivity Recovery in U.S. Manufacturing in the 1980s and 1990s," Journal of Productivity Analysis, Springer, vol. 16(2), pages 149-165, September.
    12. Windrum, Paul & Tomlinson, Mark, 1999. "Knowledge-intensive services and international competitiveness: a four country comparison," Research Memorandum 023, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    13. Yvonne Wolfmayr & Kurt Kratena & Peter Mayerhofer & Jan Stankovsky, 2006. "Teilstudie 13: Exporte von Waren und Dienstleistungen stärken die Nachfrage," WIFO Studies, WIFO, number 27452, April.
    14. 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.
    15. Zvi Griliches, 1992. "Introduction to "Output Measurement in the Service Sectors"," NBER Chapters, in: Output Measurement in the Service Sectors, pages 1-22, National Bureau of Economic Research, Inc.
    16. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
    17. Francois, Joseph F, 1990. "Producer Services, Scale, and the Division of Labor," Oxford Economic Papers, Oxford University Press, vol. 42(4), pages 715-729, October.
    18. M. Landesmann & M. Pfaffermayr, 1997. "Technological competition and trade performance," Applied Economics, Taylor & Francis Journals, vol. 29(2), pages 179-196.
    19. Marcela Miozzo & Ian Miles (ed.), 2003. "Internationalization, Technology and Services," Books, Edward Elgar Publishing, number 2784.
    20. Zvi Griliches, 1992. "Output Measurement in the Service Sectors," NBER Books, National Bureau of Economic Research, Inc, number gril92-1.
    21. Karsten Bjerring Olsen, 2006. "Productivity Impacts of Offshoring and Outsourcing: A Review," OECD Science, Technology and Industry Working Papers 2006/1, OECD Publishing.
    22. Michael Peneder, 2005. "Creating Industry Classifications by Statistical Cluster Analysis," WIFO Working Papers 257, WIFO.
    23. Bernhard Dachs & Hannes Leo, 1999. "Die Innovationsaktivitäten der österreichischen Wirtschaft. Band 2: Dienstleistungssektor. Kurzfassung," WIFO Studies, WIFO, number 19771.
    24. Hannes Leo, 1999. "Die Innovationsaktivitäten der österreichischen Wirtschaft. Band 1: Produzierender Sektor," WIFO Studies, WIFO, number 19768.
    25. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "Multilateral Comparisons of Output, Input, and Productivity Using Superlative Index Numbers," Economic Journal, Royal Economic Society, vol. 92(365), pages 73-86, March.
    26. Jan Fagerberg, 1995. "Is there a large-country advantage in high-tech?," Working Papers Archives 1995526, Centre for Technology, Innovation and Culture, University of Oslo.
    27. repec:wsr:wpaper:y:2007:i:002 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ewa Cieślik, 2022. "A New Era Is Beginning in Central and Eastern Europe: Information and Communication Technology Services Exceed Manufacturing in the Global Production Chain," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(4), pages 2607-2639, December.
    2. Evangelista, Rinaldo & Lucchese, Matteo & Meliciani, Valentina, 2013. "Business services, innovation and sectoral growth," Structural Change and Economic Dynamics, Elsevier, vol. 25(C), pages 119-132.
    3. Antimiani, Alessandro & Cernat, Lucian, 2017. "Liberalizing global trade in Mode 5 services: how much is worth?," Conference papers 332872, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Patricia Walter & Rene Dell`mour, 2010. "Firm level analysis of international trade in services," IFC Working Papers 4, Bank for International Settlements.
    5. Chen, Guo & Liu, Yishuang & Gao, Qizheng & Zhang, Jianqing, 2023. "Does regional services development enhance manufacturing firm productivity? A manufacturing servitization perspective," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 451-466.
    6. Cuiping Yu & Decai Tang & Acheampong Paul Tenkorang & Brandon J. Bethel, 2021. "The Impact of the Opening of Producer Services on the International Competitiveness of Manufacturing Industry," Sustainability, MDPI, vol. 13(20), pages 1-17, October.
    7. Wenxi Lu, 2018. "FDI, Service imports and Export development," School of Economics and Public Policy Working Papers 2018-05, University of Adelaide, School of Economics and Public Policy.
    8. Osbat, Chiara & Jochem, Alex & Özyurt, Selin & Tello, Patry & Bragoudakis, Zacharias & Micallef, Brian & Sideris, Dimitris & Papadopoulou, Niki & Ajevskis, Viktors & Krekó, Judit & Gaulier, Guillaume , 2012. "Competitiveness and external imbalances within the euro area," Occasional Paper Series 139, European Central Bank.
    9. Cernat, Lucian & Kutlina-Dimitrova, Zornitsa, 2014. "Thinking in a box: A ‘mode 5’ approach to service trade," DG TRADE Chief Economist Notes 2014-1, Directorate General for Trade, European Commission.
    10. Rinaldo Evangelista & Matteo Lucchese & Valentina Meliciani, 2015. "Business services and the export performances of manufacturing industries," Journal of Evolutionary Economics, Springer, vol. 25(5), pages 959-981, November.
    11. Zaclicever, Dayna & Bontadini, Filippo & Mulder, Nanno & Avendaño, Rolando, 2020. "Latin America’s faltering manufacturing competitiveness: What role for intermediate services?," Comercio Internacional 45061, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    12. Rinaldo Evangelista & Matteo Lucchese & Valentina Meliciani, 2013. "The contribution of Business services to the export performances of manufacturing industries. An empirical study on 5 European countries," Working Papers 14, Birkbeck Centre for Innovation Management Research, revised Nov 2013.
    13. Jesus Maria Irigoyen & Josefa Monteagudo & Alexander Rutkowski, 2012. "A closer look at some drivers of trade performance at Member State level," Quarterly Report on the Euro Area (QREA), Directorate General Economic and Financial Affairs (DG ECFIN), European Commission, vol. 11(2), pages 29-39, July.
    14. 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.
    15. MARSCHINSKI Robert & DE AMORES HERNANDEZ Antonio & AMOROSO Sara & BAUER Peter & CARDANI Roberta & CSEFALVAY Zoltan & GENTY Aurelien & GKOTSIS Petros & GREGORI Wildmer & GRASSANO Nicola & HERNANDEZ GUE, 2021. "EU competitiveness: recent trends, drivers, and links to economic policy: A Synthesis Report," JRC Research Reports JRC123232, Joint Research Centre.
    16. Ewa Cieślik, 2020. "Cross-Sectoral Inter-Country Linkages under the Belt and Road Initiative: Chinese ICT Services Value Added Inflows to Manufacturing Exports in the New Eurasian Land Bridge Economies," Sustainability, MDPI, vol. 12(20), pages 1-20, October.
    17. Francesca D'Auria & Jesus Maria Irigoyen & Josefa Monteagudo & Plamen Nikolov & Alexander Rutkowski & Michael Sket & Ann-Louise Winther, . "Quarterly Report on the Euro Area (QREA), Vol.11, No.2 (2012)," Quarterly Report on the Euro Area (QREA), Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:wsr:ecbook:2008:i:i-009 is not listed on IDEAS
    2. Yvonne Wolfmayr & Kurt Kratena & Peter Mayerhofer & Jan Stankovsky, 2006. "Teilstudie 13: Exporte von Waren und Dienstleistungen stärken die Nachfrage," WIFO Studies, WIFO, number 27452, April.
    3. Evangelista, Rinaldo & Lucchese, Matteo & Meliciani, Valentina, 2013. "Business services, innovation and sectoral growth," Structural Change and Economic Dynamics, Elsevier, vol. 25(C), pages 119-132.
    4. Ohnemus, Jörg, 2009. "Productivity effects of business process outsourcing: a firm-level investigation based on panel data," ZEW Discussion Papers 09-088, ZEW - Leibniz Centre for European Economic Research.
    5. Kiyoyasu Tanaka, 2009. "Producer Services and Manufacturing Productivity: Evidence from Japan Industrial Productivity Database," Global COE Hi-Stat Discussion Paper Series gd09-076, Institute of Economic Research, Hitotsubashi University.
    6. Kunsoo Han & Robert J. Kauffman & Barrie R. Nault, 2011. "Research Note ---Returns to Information Technology Outsourcing," Information Systems Research, INFORMS, vol. 22(4), pages 824-840, December.
    7. Valentina Meliciani, 2010. "Exports of Knowledge-intensive Services and Manufactures: The Role of ICTs and Intersectoral Linkages," Chapters, in: Robert M. Solow & Jean-Philippe Touffut (ed.), The Shape of the Division of Labour, chapter 4, Edward Elgar Publishing.
    8. Rosario Crinò, 2009. "Offshoring, Multinationals And Labour Market: A Review Of The Empirical Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 23(2), pages 197-249, April.
    9. Ohnemus, Jörg, 2007. "Does IT Outsourcing Increase Firm Success? An Empirical Assessment using Firm-Level Data," ZEW Discussion Papers 07-087, ZEW - Leibniz Centre for European Economic Research.
    10. 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, July.
    11. Sonia Mukherjee, "undated". "The Role of Services in Enhancing Indian Manufacturing Exports: A Firm Level Analysis, 2000-01 to 2011-12," Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi Discussion Papers 15-08, Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi, India.
    12. Magnus Lodefalk, 2014. "The role of services for manufacturing firm exports," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(1), pages 59-82, February.
    13. Pierce, Justin R., 2011. "Plant-level responses to antidumping duties: Evidence from U.S. manufacturers," Journal of International Economics, Elsevier, vol. 85(2), pages 222-233.
    14. Yvonne Wolfmayr, 2008. "Trade Barriers in Services and Competitive Strengths in the Austrian Service Sector. An Analysis at the Detailed Sector Level," WIFO Studies, WIFO, number 34223.
    15. Philippe Aghion & Richard Blundell & Rachel Griffith & Peter Howitt & Susanne Prantl, 2009. "The Effects of Entry on Incumbent Innovation and Productivity," The Review of Economics and Statistics, MIT Press, vol. 91(1), pages 20-32, February.
    16. Roberto Antonietti, 2016. "From outsourcing to productivity, passing through training: microeconometric evidence from Italy," Industry and Innovation, Taylor & Francis Journals, vol. 23(5), pages 407-425, July.
    17. João Amador & Sónia Cabral, 2014. "Global Value Chains: Surveying Drivers, Measures and Impacts," Working Papers w201403, Banco de Portugal, Economics and Research Department.
    18. Rinaldo Evangelista & Matteo Lucchese & Valentina Meliciani, 2013. "The contribution of Business services to the export performances of manufacturing industries. An empirical study on 5 European countries," Working Papers 14, Birkbeck Centre for Innovation Management Research, revised Nov 2013.
    19. Chen, Guo & Liu, Yishuang & Gao, Qizheng & Zhang, Jianqing, 2023. "Does regional services development enhance manufacturing firm productivity? A manufacturing servitization perspective," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 451-466.
    20. Matteo Fiorini & Bernard Hoekman & Clément Malgouyres, 2018. "Services policy reform and manufacturing employment: Evidence from transition economies," The World Economy, Wiley Blackwell, vol. 41(9), pages 2320-2348, September.
    21. repec:wsr:ecbook:2008:i:i-017 is not listed on IDEAS
    22. Mariotti, Sergio & Nicolini, Marcella & Piscitello, Lucia, 2013. "Vertical linkages between foreign MNEs in service sectors and local manufacturing firms," Structural Change and Economic Dynamics, Elsevier, vol. 25(C), pages 133-145.

    More about this item

    Keywords

    FIW Services;

    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:wfo:wstudy:34225. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Florian Mayr (email available below). General contact details of provider: https://edirc.repec.org/data/wifooat.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.