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'Tertiarization' of manufacturing industry in the new economy - experiences in Hungarian companies

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  • Andrea Szalavetz

    () (Institute of World Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences)

Abstract

The first chapter describes the conceptual basis behind the tertiarization of manufacturing. The paper then goes on to develop some predictions about the changes in the structure of international trade in services, resulting from the tertiarization process. It analyses some methodological difficulties with statistics on international trade in services – difficulties in quantifying the volume and value of intra-firm services. The next chapter recounts the findings of a field survey taken in 2002. Ten engineering subsidiaries of large multinational corporations (MNCs) in Hungary were examined for signs of integration of service activities into their manufacturing. The survey looked into the way the activity portfolio of the ten firms had diversified and into the implications of this process for their profitability.

Suggested Citation

  • Andrea Szalavetz, 2003. "'Tertiarization' of manufacturing industry in the new economy - experiences in Hungarian companies," IWE Working Papers 134, Institute for World Economics - Centre for Economic and Regional Studies- Hungarian Academy of Sciences.
  • Handle: RePEc:iwe:workpr:134
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    File URL: http://www.vki.hu/workingpapers/wp-134.pdf
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    References listed on IDEAS

    as
    1. Julian Birkinshaw, 1996. "How Multinational Subsidiary Mandates are Gained and Lost," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(3), pages 467-495, September.
    2. Fagerberg, Jan, 2000. "Technological progress, structural change and productivity growth: a comparative study," Structural Change and Economic Dynamics, Elsevier, vol. 11(4), pages 393-411, December.
    3. Caroline Freund & Diana Weinhold, 2002. "The Internet and International Trade in Services," American Economic Review, American Economic Association, vol. 92(2), pages 236-240, May.
    4. Cowan, Robin & Soete, Luc & Tchervonnava, Oxana, 2001. "Knowledge Transfer and the Services Sector in the Context of the New Economy," Research Memorandum 020, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    5. Zagler, Martin, 2002. "Services, innovation and the new economy," Structural Change and Economic Dynamics, Elsevier, vol. 13(3), pages 337-355, September.
    6. 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).
    7. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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