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

Author

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  • Lodefalk, Magnus

    (Department of Business, Economics, Statistics and Informatics)

Abstract

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

    as
    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. repec:bla:scandj:v:104:y:2002:i:4:p:567-86 is not listed on IDEAS
    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.
    5. Michael Peneder, 2007. "A sectoral taxonomy of educational intensity," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 34(3), pages 189-212, July.
    6. George J. Stigler, 1951. "The Division of Labor is Limited by the Extent of the Market," Journal of Political Economy, University of Chicago Press, vol. 59(3), pages 185-185.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    servicification; manufacturing; deindustrialisation; enterprise group level data; firm data; outsourcing; offshoring;
    All these keywords.

    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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