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Looking for a virtuous pattern of growth. Some insights for discussion

Author

Listed:
  • Matilde Mas

    (University of Valencia and Ivie)

  • Eva Benages

    (University of Valencia and Ivie)

Abstract

This paper addresses the current «manufacturing versus services» debate in relation to the question of how to unlock renewed economic growth, taking as point of departure the EC Communication For a European Industrial Renaissance. We present two criteria with which to evaluate the grounds for supporting economic sectors (either manufacturing or services): 1 The capacity to generate employment and 2 The ability to display a positive rate of productivity growth. The highly disaggregated PREDICT database is used in order to evaluate both sectors on these criteria. Our paper concludes that service sectors fulfil both of the above-mentioned criteria, whereas manufacturing sectors do not. The importance of service and manufacturing sub-sectors rooted in ICT and non-ICT R&D-intensive activities is also highlighted.

Suggested Citation

  • Matilde Mas & Eva Benages, 2016. "Looking for a virtuous pattern of growth. Some insights for discussion," EKONOMIAZ. Revista vasca de Economía, Gobierno Vasco / Eusko Jaurlaritza / Basque Government, vol. 89(01), pages 86-117.
    • Handle: RePEc:ekz:ekonoz:2016104
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    More about this item

    Keywords

    Reindustrialization; manufacturing; services; ICT;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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