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Measuring the Interaction Between Manufacturing and Services

Listed author(s):
  • Dirk Pilat
  • Anita Wölfl

This paper examines the interaction between services and manufacturing using several types of data and shows that the distinction between manufacturing and services is blurring. Services make important contributions to production, mainly through their direct contribution to total output and final demand, but to some degree also through their indirect contribution via other industries. However, services are more independent from other industries than the manufacturing sector. Most inputs that are necessary to produce services are derived from the services sector itself. Moreover, their role as providers of intermediate inputs to other industries is not yet as strong as that of the manufacturing sector. The paper also shows that a growing share of workers in the manufacturing sector is engaged in services-related occupations. Using a broad definition of service-related workers, up to 50% of manufacturing workers are in such occupations. Using firm-level data the paper finds that, despite anecdotal evidence on a growing share of services turnover within the manufacturing sector, manufacturing enterprises in most countries are not very diversified in their constituting establishment, i.e. they do not have many establishments engaged in services production. Canada is a notable exception in this respect. In other countries, it is likely that diversification primarily occurs at the level of the enterprise group. On the other hand, data on products suggest that manufacturing firms and establishments appear to derive a growing share of turnover from services, notably in countries such as Finland and Sweden. Mesure de l'interaction entre les industries manufacturières et les services Cette étude examine l’interaction qui existe entre les services et les industries manufacturières, en s’appuyant sur différents types de données. Elle montre que la distinction entre les industries manufacturières et les services tend à s’estomper. Les services apportent d’importantes contributions à la production, principalement sous forme d’apports directs à la production totale et à la demande finale, mais aussi, dans une certaine mesure, à travers leur contribution indirecte. Toutefois, les services sont plus indépendants des autres industries que ne l’est le secteur manufacturier. La plus grande partie des intrants nécessaires à la production des services procède du secteur des services lui-même. De plus, la place des services dans la fourniture d’intrants intermédiaires à d’autres secteurs n’est pas encore aussi importante que celle de l’industrie manufacturière. Ce travail révèle en outre qu’une proportion croissante des travailleurs du secteur manufacturier est employée à des fonctions liées aux services. Si l’on utilise une définition large des fonctions liées aux services, jusqu’à 50 % des travailleurs du secteur manufacturier relèvent de telles fonctions. En s’appuyant sur des données micro-économiques, ce document montre que, malgré des éléments épars qui sembleraient indiquer qu’une part croissante du chiffre d’affaires du secteur manufacturier correspond à des activités de services, dans la plupart des pays, les entreprises manufacturières restent assez peu diversifiées, ce qui signifie qu’elles ne comptent pas beaucoup d’établissements produisant des services. Le Canada constitue une exception notable à cet égard. Dans d’autres pays, il semble plutôt que la diversification s’opère essentiellement au niveau du groupe. Enfin, les données sur les produits suggèrent que les entreprises et les établissements du secteur manufacturier réalisent une part plus importante de leur chiffre d’affaires grâce aux services, notamment dans des pays comme la Finlande et la Suède.

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Paper provided by OECD Publishing in its series OECD Science, Technology and Industry Working Papers with number 2005/5.

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Date of creation: 31 May 2005
Handle: RePEc:oec:stiaaa:2005/5-en
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