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Servicification of manufacturing: evidence from Sweden
Örebro University, Swedish Business School at Örebro University. (Globalisering)ORCID iD: 0000-0003-0149-9598
2013 (English)In: International Journal of Economics and Business Research, ISSN 1756-9850, E-ISSN 1756-9869, Vol. 6, no 1, p. 87-113Article in journal (Refereed) Published
Abstract [en]

There are signs that manufacturing is becoming increasingly focused on services; this process is known as servicification. Despite suggestive evidence, large gaps remain in our knowledge regarding this process. This paper contributes to closing these gaps by discussing the phenomenon, arriving at some conjectures and examining them empirically. Comprehensive datasets at both the firm and enterprise group level are developed for Sweden. Changes in manufacturing during the period from 1997 to 2006 are analysed in depth. The results show that manufacturing has been servicifying substantially. On the input side, services and qualified services are increasingly characteristic of in-house activity. On the output side, manufacturing has been accounting for an increasing share of services in total sales and exports. Moreover, we show that diversification is much greater (almost 60% higher) when all activities in the manufacturing industry’s constituent enterprise groups are considered. The results imply that the practice of treating services and manufacturing separately – e.g., in trade policymaking – may be out-of-date. Finally, the findings illustrate the value of enterprise group-level data when studying structural economic changes.

Place, publisher, year, edition, pages
2013. Vol. 6, no 1, p. 87-113
Keywords [en]
manufacturing servicification, services, firm level, enterprise group level, outsourcing, deindustrialisation, Sweden, manufacturing industry, enterprise groups, structural economic changes
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:oru:diva-25503DOI: 10.1504/IJEBR.2013.054855OAI: oai:DiVA.org:oru-25503DiVA, id: diva2:547864
Available from: 2012-08-29 Created: 2012-08-29 Last updated: 2017-12-07Bibliographically approved
In thesis
1. Tackling barriers to firm trade: liberalisation, migration and servification
Open this publication in new window or tab >>Tackling barriers to firm trade: liberalisation, migration and servification
2013 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

This thesis analyses how to tackle barriers to firm trade and the consequences thereof. In Essay 1, we carefully model trade liberalisation scenarios that include the key elements of the WTO Doha round, scenarios that are implemented in a computable general equilibrium model. The simulation results indicate particularly strong gains for developing countries from liberalisation. A conservative estimate is that global income increases by approximately 0.2-0.7 per cent of initial GDP, depending on the degree of liberalisation, with trade facilitation contributing the most to these results. Overall, simulations indicate the importance of countries’ own liberalisation for national income gains and of a broad-based round of trade negotiations. In Essay 2, we analyse the mechanisms through which immigrant employees help firms overcome informal barriers to trade, based on a heterogeneous- firm trade model. By exploiting a rich employer-employee panel for Sweden, we show that immigrants’ skills and length-of-stay strongly influence their impact on firm trade. The link is also stronger for smaller firms and for differentiated goods, but similar across product margins of trade. Our findings are consistent with the hypothesis that immigrant employees facilitate firm trade by lowering information frictions and infusing trust into business relationships through knowledge of foreign markets and access to networks. Essay 3 is concerned with structural changes in the Swedish economy with respect to services in manufacturing. Despite suggestive evidence, large gaps remain in our knowledge about the process of servicification, a process whereby manufacturing focuses increasingly on services. We therefore analyse these changes in manufacturing in depth. The results show that manufacturing has been servicifying substantially. In Essay 4, the role of services for manufacturing firm exports is analysed The microeconometric results suggest that service inputs affect a firm’s export capabilities. Overall, Essay 4 provides new firm-level evidence for the role of services as inputs in manufacturing.

Place, publisher, year, edition, pages
Örebro: Örebro universitet, 2013. p. 45
Series
Örebro Studies in Business - Dissertations, ISSN 1654-8841 ; 23
Keywords
trade, liberalisation, WTO, CGE, trade facilitation, services, migration, employer-employee, networks, servicification, manufacturing, firm, enterprise group, deindustrialisation
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:oru:diva-28467 (URN)978-91-7668-931-8 (ISBN)
Public defence
2013-06-14, BIO, Forumhuset, Örebro universitet, Fakultetsgatan 1, Örebro, 09:00 (English)
Opponent
Supervisors
Available from: 2013-03-25 Created: 2013-03-25 Last updated: 2017-10-17Bibliographically approved

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Lodefalk, Magnus

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Citation style
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  • harvard1
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  • asciidoc
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