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Servicification of Manufacturing - Evidence from Swedish Firm and Enterprise Group Level Data


  • Lodefalk, Magnus

    () (Department of Business, Economics, Statistics and Informatics)


The manufacturing industry in industrialised countries is often argued to servicify - use and sell more services - but knowledge is poor. We examine the phenomenon using detailed and com-prehensive micro level data at both the firm and enterprise group level for Sweden (1997-2006). We find that manufacturing is servicifying substantially. Services and qualified services are increasingly characterising in-house activity in manufacturing. The results imply that treat-ing services and manufacturing separately - for instance in trade policy negotiations - may be inappropriate in industrialised countries. Finally, the findings illustrate the value of enterprise group level data when studying structural economic changes.

Suggested Citation

  • Lodefalk, Magnus, 2010. "Servicification of Manufacturing - Evidence from Swedish Firm and Enterprise Group Level Data," Working Papers 2010:3, Örebro University, School of Business.
  • Handle: RePEc:hhs:oruesi:2010_003

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    References listed on IDEAS

    1. Ekholm, Karolina & Hakkala, Katariina, 2005. "The Effect of Offshoring on Labor Demand: Evidence from Sweden," Working Paper Series 654, Research Institute of Industrial Economics.
    2. Falk, Martin & Koebel, Bertrand M, 2002. " Outsourcing, Imports and Labour Demand," Scandinavian Journal of Economics, Wiley Blackwell, vol. 104(4), pages 567-586, December.
    3. Bernd Görzig & Andreas Stephan, 2002. "Outsourcing and Firm-level Performance," Discussion Papers of DIW Berlin 309, DIW Berlin, German Institute for Economic Research.
    4. McCarthy, Ian & Anagnostou, Angela, 2004. "The impact of outsourcing on the transaction costs and boundaries of manufacturing," International Journal of Production Economics, Elsevier, vol. 88(1), pages 61-71, March.
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    Cited by:

    1. Hatzigeorgiou, Andreas & Lodefalk, Magnus, 2016. "The Brexit Trade Disruption Revisited," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 17(1).
    2. Johannes Schwarzer, 2017. "The Effects of Exporting on Labour Productivity: Evidence from German Firms," Working Papers 1702, Council on Economic Policies.
    3. Lodefalk, Magnus & Kyvik Nordås, Hildegunn, 2017. "Trading firms and trading costs in services: The case of Sweden," Working Papers 2017:4, Örebro University, School of Business.
    4. 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.
    5. repec:bla:jemstr:v:26:y:2017:i:4:p:820-841 is not listed on IDEAS
    6. 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.
    7. Martin Falk & Fei Peng, 2013. "The increasing service intensity of European manufacturing," The Service Industries Journal, Taylor & Francis Journals, vol. 33(15-16), pages 1686-1706, December.
    8. Hatzigeorgiou, Andreas & Lodefalk, Magnus, 2015. "The Role of Foreign Networks for Firm Export of Services," Working Papers 2015:6, Örebro University, School of Business.
    9. 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.
    10. repec:rif:bbooks:275 is not listed on IDEAS
    11. Christensen, Jesper Lindgaard, 2013. "The ability of current statistical classifications to separate services and manufacturing," Structural Change and Economic Dynamics, Elsevier, vol. 26(C), pages 47-60.
    12. Arnarson, Björn Thor & Gullstrand, Joakim, 2016. "Linking Services to Manufacturing Exports," Working Papers 2016:27, Lund University, Department of Economics, revised 24 Feb 2017.
    13. Sonia MUKHERJEE, 2015. "The role of Services in Enhancing Indian Manufacturing Exports: A Firm Level Analysis, 2000-01 to 2011-12," Journal of Economics Library, KSP Journals, vol. 2(4), pages 334-349, December.
    14. Bernard Hoekman & Ben Shepherd, 2017. "Services Productivity, Trade Policy and Manufacturing Exports," The World Economy, Wiley Blackwell, vol. 40(3), pages 499-516, March.
    15. SAHOO, Pravakar & KUMAR DASH, Ranjan, 2014. "India's surge in Modern Services Exports: Empirics for policy," Working Papers 2014010, University of Antwerp, Faculty of Applied Economics.
    16. Olof Ejermo & Karin Bergman, 2014. "Services vs. Manufacturing – How Does Foreign and Domestic Sales Impact on Their R&D?," Journal of Industry, Competition and Trade, Springer, vol. 14(3), pages 367-391, September.
    17. Magnus Lodefalk, 2016. "Temporary expats for exports: micro-level evidence," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(4), pages 733-772, November.
    18. Nelson Marconi & Igor Lopes Rocha & Guilherme R. Magacho, 2016. "Sectoral Capabilities And Productive Structure: An Input-Output Analysis Of The Key Sectors Of The Brazilian Economy," Anais do XLII Encontro Nacional de Economia [Proceedings of the 42ndd Brazilian Economics Meeting] 086, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].

    More about this item


    servicification; manufacturing; deindustrialisation; enterprise group level data; firm data; outsourcing; offshoring;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure


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