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Manufacturing In Decline? A Matter Of Definition

Author

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  • Dllek Cetindamar Kakaomerlioglu
  • Bo Carlsson

Abstract

This paper offers a new approach to the definition of manufacturing activities, placing them in a broader framework to capture the dynamics of manufacturing in the economy. After discussing why in many cases it may bc appropriate to consider producer services and tnanttfacturing industries together, the paper analyzes the development of manufacturing and producer service industries in the United States. We examine the factors leading to the growth of producer services, concluding that unbundling, the shift of some activities (such as legal, accounting, and data processing services) from manufacturing to producer services industries, is an important explanation for this growth. Finally, we discuss the relationship between manufacturing and producer services. Our analysis, based on a broader definition of manufacturing, shows that over the last two decades the U.S. manufacturing base has declined only slightly rather than radically as suggested in many studies.

Suggested Citation

  • Dllek Cetindamar Kakaomerlioglu & Bo Carlsson, 1999. "Manufacturing In Decline? A Matter Of Definition," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 8(3), pages 175-196.
    • Handle: RePEc:taf:ecinnt:v:8:y:1999:i:3:p:175-196
    DOI: 10.1080/10438599900000008
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    Citations

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    Cited by:

    1. Chen, Liming & Felipe, Jesus & Kam, Andrew J.Y. & Mehta, Aashish, 2021. "Is employment globalizing?," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 74-92.
    2. Thorsten Bohn, 2003. "Knowledge Intensive Business Services in Regional Systems of Innovation - Initial Results from the Case of Southeast-Finland," ERSA conference papers ersa03p161, European Regional Science Association.
    3. Fernandes, Cristina & Ferreira, João, 2011. "Knowledge Spillovers and Knowledge Intensive Business Services: An Empirical Study," MPRA Paper 34751, University Library of Munich, Germany.
    4. Huasheng Zhu & Ruobin Liu & Bo Chen, 2023. "The Rise of Specialized and Innovative Little Giant Enterprises under China’s ‘Dual Circulation’ Development Pattern: An Analysis of Spatial Patterns and Determinants," Land, MDPI, vol. 12(1), pages 1-26, January.
    5. Shanzi Ke & Ming He & Chenhua Yuan, 2014. "Synergy and Co-agglomeration of Producer Services and Manufacturing: A Panel Data Analysis of Chinese Cities," Regional Studies, Taylor & Francis Journals, vol. 48(11), pages 1829-1841, November.

    More about this item

    Keywords

    Manufacturing; Producer services; U. S. economy JEL Classification: L0; L6;
    All these keywords.

    JEL classification:

    • L0 - Industrial Organization - - General
    • L6 - Industrial Organization - - Industry Studies: Manufacturing

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