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Productivity linkages between services and manufacturing: Firm-level evidence from developing countries

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  • Shepherd, Ben

Abstract

This paper uses firm-level data from 119 developing countries to show that services sector productivity is positively associated with manufacturing productivity. Moreover, the link between productivity in services and manufacturing is particularly strong for manufacturing firms that are more intensive in their use of services inputs. At the mean level of services input use in the dataset, a 10% improvement in services productivity is associated with a 0.6% improvement in manufacturing productivity.

Suggested Citation

  • Shepherd, Ben, 2012. "Productivity linkages between services and manufacturing: Firm-level evidence from developing countries," MPRA Paper 41760, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:41760
    as

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    File URL: https://mpra.ub.uni-muenchen.de/41760/1/MPRA_paper_41760.pdf
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    References listed on IDEAS

    as
    1. Arnold, Jens M. & Javorcik, Beata S. & Mattoo, Aaditya, 2011. "Does services liberalization benefit manufacturing firms?: Evidence from the Czech Republic," Journal of International Economics, Elsevier, vol. 85(1), pages 136-146, September.
    2. Jens Matthias Arnold & Beata Javorcik & Molly Lipscomb & Aaditya Mattoo, 2016. "Services Reform and Manufacturing Performance: Evidence from India," Economic Journal, Royal Economic Society, vol. 126(590), pages 1-39, February.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Services; Manufacturing; Productivity linkages; Firm-level data; Developing countries;

    JEL classification:

    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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