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Servicification of Manufacturing Firms Makes Divides in Trade Policy-Making Antiquated
Örebro University, Swedish Business School at Örebro University. (Internationell ekonomi)ORCID iD: 0000-0003-0149-9598
(English)Manuscript (preprint) (Other academic)
Abstract [en]

The decline of manufacturing in OECD countries and job implications has been a long-time concern. Recently, policy-makers have set out for reindustrialisation. A trend related to these concerns and aspirations is the servicification of manufacturing – the increase in use, produce and sales of services. However, servicification of firms and its role for foreign trade and policy have only received limited attention. This paper reviews micro-level evidence and discusses trade policy implications. Servicification is found in several countries, including China, and there are indications that imported, domestic and exported services are key for the competitiveness of today’s manufacturing firms and their participation in international value chains. Therefore, the historic divides in trade-policy-making between trade in manufactures and services, between offensive and defensive interests, and between modes of supply are largely antiquated. Potential trade policy implications also include to: reform how governments consult business for trade negotiations; facilitate cross-border movement of persons; and cut tariffs on services embodied and embedded in manufactures and their sales.

Keywords [en]
Servicification, services, manufacturing, deindustrialization, offshoring, onshoring, trade, trade policy, GATT, WTO, Mode 4
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:oru:diva-41277OAI: oai:DiVA.org:oru-41277DiVA, id: diva2:780244
Projects
Tjänstefiering och internationalisering av tillverkningsindustrin
Funder
The Jan Wallander and Tom Hedelius FoundationAvailable from: 2015-01-14 Created: 2015-01-14 Last updated: 2017-10-17Bibliographically approved

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Lodefalk, Magnus

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Swedish Business School at Örebro University
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CiteExportLink to record
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Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
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  • Other style
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Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf