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Services and Manufacturing in Global Value Chains: Is the Dstinction Obsolete?

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  • Sébastien Miroudot

Abstract

This paper introduces a taxonomy of service activities in GVCs and describes the main statistical challenges in assessing the contribution of manufacturing and services to output, value added, or trade. It then reviews three approaches that take GVCs into account in the analysis of income, comparative advantage, and productivity to address these challenges. As statisticians are working on improving the framework for understanding global production, policymakers should be aware of the blurring lines between goods and services.

Suggested Citation

  • Sébastien Miroudot, 2019. "Services and Manufacturing in Global Value Chains: Is the Dstinction Obsolete?," Working Papers id:13013, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:13013
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    1. David H. Autor & David Dorn & Gordon H. Hanson, 2016. "The China Shock: Learning from Labor-Market Adjustment to Large Changes in Trade," Annual Review of Economics, Annual Reviews, vol. 8(1), pages 205-240, October.
    2. Magnus Lodefalk, 2013. "Servicification of manufacturing - evidence from Sweden," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 6(1), pages 87-113.
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    4. Matthieu Crozet & Emmanuel Milet, 2017. "Should everybody be in services? The effect of servitization on manufacturing firm performance," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 26(4), pages 820-841, December.
    5. Dani Rodrik, 2016. "Premature deindustrialization," Journal of Economic Growth, Springer, vol. 21(1), pages 1-33, March.
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    7. Charles Cadestin & Koen De Backer & Sébastien Miroudot & Laurent Moussiegt & Davide Rigo & Ming Ye, 2019. "Multinational enterprises in domestic value chains," OECD Science, Technology and Industry Policy Papers 63, OECD Publishing.
    8. Gene M. Grossman & Esteban Rossi-Hansberg, 2008. "Trading Tasks: A Simple Theory of Offshoring," American Economic Review, American Economic Association, vol. 98(5), pages 1978-1997, December.
    9. Sébastien Miroudot & Charles Cadestin, 2017. "Services In Global Value Chains: From Inputs to Value-Creating Activities," OECD Trade Policy Papers 197, OECD Publishing.
    10. Andrew B. Bernard & Teresa C. Fort, 2015. "Factoryless Goods Producing Firms," American Economic Review, American Economic Association, vol. 105(5), pages 518-523, May.
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    12. Markus Kelle, 2013. "Crossing Industry Borders: German Manufacturers as Services Exporters," The World Economy, Wiley Blackwell, vol. 36(12), pages 1494-1515, December.
    13. Marcel P Timmer & Sébastien Miroudot & Gaaitzen J de Vries, 2019. "Functional specialisation in trade," Journal of Economic Geography, Oxford University Press, vol. 19(1), pages 1-30.
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    Cited by:

    1. Lorenzo Cresti & Maria Enrica Virgillito, 2022. "Strategic sectors and essential jobs: a new taxonomy based on employment multipliers," LEM Papers Series 2022/23, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    2. Ketan Reddy & Subash Sasidharan & Shandre Thangavelu, 2023. "Does servicification of manufacturing increase the GVC activities of firms? Case of India," The World Economy, Wiley Blackwell, vol. 46(1), pages 153-181, January.
    3. Alexander Jaax & Sébastien Miroudot, 2021. "Capturing value in GVCs through intangible assets: The role of the trade–investment–intellectual property nexus," Journal of International Business Policy, Palgrave Macmillan, vol. 4(3), pages 433-452, September.

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    More about this item

    Keywords

    eSS; taxation; taxonomy of service activities; statistical challenges; manufacturing; service output; value; global value chains (GVCs); de-industrialization; servicification; income; global production; policymakers; goods and services.;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F68 - International Economics - - Economic Impacts of Globalization - - - Policy
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L80 - Industrial Organization - - Industry Studies: Services - - - General

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