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Crossing Industrial Borders: German Manufacturers as Services Exporters

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  • Markus Kelle

    () (Centro Studi Luca d\'Agliano)

Abstract

Manufacturing firms increasingly engage in service trade activities. Microlevel data show that German manufacturers account for roughly 25% of German cross-border producer service exports. I have found that particular construction, engineering, and R&D services are exported. The machinery industries and automobile and chemicals producers dominate the overall pattern. The types of services exported vary strongly across industries. Furthermore, export activities are concentrated on a few large exporters. Service exports of advertising, data processing, and R&D services are found to likely support foreign affiliates of firms. However, these headquarter services are only infrequently observable. Much more important are construction and engineering services exported by machinery firms. These might represent installation and maintenance services exported to complement the supply of machinery. Beyond the support of foreign affiliates of firms, R&D services exports might be also important to transfer knowledge between unaffiliated firms at different stages of the value chain.

Suggested Citation

  • 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.
  • Handle: RePEc:csl:devewp:329
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    File URL: http://www.dagliano.unimi.it//media/WP2012_329.pdf
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    Cited by:

    1. Arne J. Nagengast & Robert Stehrer, 2016. "The Great Collapse in Value Added Trade," Review of International Economics, Wiley Blackwell, vol. 24(2), pages 392-421, May.
    2. Stefano Federico & Enrico Tosti, 2017. "Exporters and Importers of Services: Firm-Level Evidence on Italy," The World Economy, Wiley Blackwell, vol. 40(10), pages 2078-2096, October.
    3. Henze, Philipp, 2014. "Structural change and wage inequality: Evidence from German micro data," Center for European, Governance and Economic Development Research Discussion Papers 204, University of Goettingen, Department of Economics.
    4. Dincer, Nergiz & Tekin-Koru, Ayça, 2015. "A League of Their Own: Services Exporters –A Developing Country Perspective-," MPRA Paper 64363, University Library of Munich, Germany.
    5. Patricia Walter, 2017. "Anatomy of Austria’s trade in services," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 33-52.
    6. Dincer, Nergiz & Tekin-Koru, Ayca, 2014. "A League of Their Own: Services Exporters within Goods Exporters," MPRA Paper 53294, University Library of Munich, Germany.

    More about this item

    Keywords

    Services Exports; Manufacturing Sector; Goods Trade; Multinational Firms;

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L80 - Industrial Organization - - Industry Studies: Services - - - General

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