IDEAS home Printed from
MyIDEAS: Login to save this paper or follow this series

The increasing service intensity of European manufacturing

  • Falk, Martin
  • Peng, Fei

This paper investigates the impact of the increase in service output on the demand for different categories of service occupations in the EU manufacturing sector. Furthermore, we investigate the impact of the global sourcing of producer services on the demand for different service occupations. Using fixed-effects models based on the manufacturing sector for 18 EU countries for the period 1995-2008, we find that the employment share of service occupations is significantly and positively related to the output share of producer services in manufacturing. In particular, the increase in the output share of services accounts for an average of 13 percent of the increase in the share of service occupations. When service occupations are disaggregated by different categories, we find that the output share of services is significantly and positively related to the share of managers, professionals, and technicians. In contrast, service occupations involving clerks, administrative support, and other office-related personnel do not benefit from increasing service revenues. Finally, professionals and technicians are complementary to intermediate producer services (either from domestic or foreign suppliers), while clerks do not benefit from the rise in intermediate service inputs in manufacturing.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
File Function: original version
Download Restriction: no

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 38600.

in new window

Date of creation: Jul 2011
Date of revision:
Handle: RePEc:pra:mprapa:38600
Contact details of provider: Postal: Schackstr. 4, D-80539 Munich, Germany
Phone: +49-(0)89-2180-2219
Fax: +49-(0)89-2180-3900
Web page:

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Michael Peneder & Serguei Kaniovski & Bernhard Dachs, 2003. "What follows tertiarisation? structural change and the role of knowledge-based services," The Service Industries Journal, Taylor & Francis Journals, vol. 23(2), pages 47-66, March.
  2. John C. Driscoll & Aart C. Kraay, 1998. "Consistent Covariance Matrix Estimation With Spatially Dependent Panel Data," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 549-560, November.
  3. Dirk Pilat & Anita Wölfl, 2005. "Measuring the Interaction Between Manufacturing and Services," OECD Science, Technology and Industry Working Papers 2005/5, OECD Publishing.
  4. Ina Drejer, 2002. "Business Services as a Production Factor," Economic Systems Research, Taylor & Francis Journals, vol. 14(4), pages 389-405.
  5. Fixler, Dennis J. & Siegel, Donald, 1999. "Outsourcing and productivity growth in services," Structural Change and Economic Dynamics, Elsevier, vol. 10(2), pages 177-194, June.
  6. Francois, Joseph F, 1990. "Producer Services, Scale, and the Division of Labor," Oxford Economic Papers, Oxford University Press, vol. 42(4), pages 715-29, October.
  7. Alan Macpherson, 2008. "Producer Service Linkages and Industrial Innovation: Results of a Twelve-Year Tracking Study of New York State Manufacturers," Growth and Change, Wiley Blackwell, vol. 39(1), pages 1-23.
  8. J. Jensen, 2008. "Trade in High-Tech Services," Journal of Industry, Competition and Trade, Springer, vol. 8(3), pages 181-197, December.
  9. Mary O'Mahony & Marcel P. Timmer, 2009. "Output, Input and Productivity Measures at the Industry Level: The EU KLEMS Database," Economic Journal, Royal Economic Society, vol. 119(538), pages F374-F403, 06.
  10. Sébastien Miroudot & Rainer Lanz & Alexandros Ragoussis, 2009. "Trade in Intermediate Goods and Services," OECD Trade Policy Papers 93, OECD Publishing.
  11. Eva Pardos & Ana G�mez-Loscos & Fernando Rubiera-Moroll�n, 2007. "‘Do versus Buy’ Decisions in the Demand for Knowledge Intensive Business Services," The Service Industries Journal, Taylor & Francis Journals, vol. 27(3), pages 233-249, April.
  12. Arjan Lejour & Peter Smith, 2008. "International Trade in Services—Editorial Introduction," Journal of Industry, Competition and Trade, Springer, vol. 8(3), pages 169-180, December.
  13. Lodefalk, Magnus, 2010. "Servicification of Manufacturing - Evidence from Swedish Firm and Enterprise Group Level Data," Working Papers 2010:3, Örebro University, School of Business.
  14. Joseph Francois & Julia Woerz, 2007. "Producer Services, Manufacturing Linkages, and Trade," Tinbergen Institute Discussion Papers 07-045/2, Tinbergen Institute.
  15. Lourens Broersma & Bart Van Ark, 2007. "Ict, Business Services And Labour Productivity Growth," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 16(6), pages 433-449.
  16. Desiree Welsum & Xavier Reif, 2007. "We Can Work It Out - The Globalisation of ICT-enabled Services," Working Papers id:802, eSocialSciences.
  17. Alan MacPherson & Vida Vanchan, 2010. "The Outsourcing of Industrial Design Services by Large US Manufacturing Companies," International Regional Science Review, , vol. 33(1), pages 3-30, January.
  18. Laura Abramovsky & Rachel Griffith, 2005. "Outsourcing and offshoring of business services: how important is ICT?," IFS Working Papers W05/22, Institute for Fiscal Studies.
  19. Vandermerwe, Sandra & Rada, Juan, 1988. "Servitization of business: Adding value by adding services," European Management Journal, Elsevier, vol. 6(4), pages 314-324, December.
  20. P-Y. Léo & J. Philippe, 2001. "Offer of Services by Goods Exporters: Strategic and Marketing Dimensions," The Service Industries Journal, Taylor & Francis Journals, vol. 21(2), pages 91-116, April.
  21. Marina Doroshenko & Ian Miles & Dmitry Vinogradov, 2014. "Knowledge Intensive Business Services: The Russian Experience," Foresight-Russia, National Research University Higher School of Economics, vol. 8(4), pages 24-39.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:38600. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.