IDEAS home Printed from https://ideas.repec.org/p/phd/dpaper/dp_2016-46.html
   My bibliography  Save this paper

Why Manufacturing Resurgence Will Mean More Services, Not Less

Author

Listed:
  • Serafica, Ramonette B.

Abstract

Services are critical inputs in manufacturing production, and this is likely to intensify with the advent of new technologies. Based on the trade in value-added data of the Organisation for Economic Co-operation and Development, the share of services embodied in Philippine manufacturing exports is among the lowest in the region. Moreover, value added from "ICT services" and "Other business services" seem inadequate compared to patterns observed in other countries, while the share of "Wholesale and retail services" is significantly high. To sustain manufacturing resurgence, reliable, good quality, and affordable services are essential. Thus, the government should vigorously undertake structural reforms particularly in services needed by producers and exporters. Improving the regulatory regime for services trade is especially crucial to enable manufacturing firms to participate and move up global value chains.

Suggested Citation

  • Serafica, Ramonette B., 2016. "Why Manufacturing Resurgence Will Mean More Services, Not Less," Discussion Papers DP 2016-46, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:dpaper:dp_2016-46
    as

    Download full text from publisher

    File URL: https://www.pids.gov.ph/publication/discussion-papers/why-manufacturing-resurgence-will-mean-more-services-not-less
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ingo Borchert & Batshur Gootiiz & Aaditya Mattoo, 2014. "Policy Barriers to International Trade in Services: Evidence from a New Database," The World Bank Economic Review, World Bank, vol. 28(1), pages 162-188.
    2. Arnold, Jens M. & Javorcik, Beata S. & Mattoo, Aaditya, 2011. "Does services liberalization benefit manufacturing firms?: Evidence from the Czech Republic," Journal of International Economics, Elsevier, vol. 85(1), pages 136-146, September.
    3. Lanz, Rainer & Maurer, Andreas, 2015. "Services and global value chains: Some evidence on servicification of manufacturing and services networks," WTO Staff Working Papers ERSD-2015-03, World Trade Organization (WTO), Economic Research and Statistics Division.
    4. John R. Bryson, 2010. "Service Innovation and Manufacturing Innovation: Bundling and Blending Services and Products in Hybrid Production Systems to Produce Hybrid Products," Chapters, in: Faïz Gallouj & Faridah Djellal (ed.), The Handbook of Innovation and Services, chapter 28, Edward Elgar Publishing.
    5. Joseph Francois & Bernard Hoekman, 2010. "Services Trade and Policy," Journal of Economic Literature, American Economic Association, vol. 48(3), pages 642-692, September.
    6. Jens Matthias Arnold & Aaditya Mattoo & Gaia Narciso, 2008. "Services Inputs and Firm Productivity in Sub-Saharan Africa: Evidence from Firm-Level Data," Journal of African Economies, Centre for the Study of African Economies, vol. 17(4), pages 578-599, August.
    7. John Humphrey & Hubert Schmitz, 2002. "How does insertion in global value chains affect upgrading in industrial clusters?," Regional Studies, Taylor & Francis Journals, vol. 36(9), pages 1017-1027.
    8. Joseph Francois & Miriam Manchin & Patrick Tomberger, 2015. "Services Linkages and the Value Added Content of Trade," The World Economy, Wiley Blackwell, vol. 38(11), pages 1631-1649, November.
    9. Rainer Lanz & Andreas Maurer, 2015. "Services and Global Value Chains: Servicification of Manufacturing and Services Networks," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 6(03), pages 1-18.
    10. Faïz Gallouj & Faridah Djellal (ed.), 2010. "The Handbook of Innovation and Services," Books, Edward Elgar Publishing, number 12872.
    11. Koen De Backer & Isabelle Desnoyers-James & Laurent Moussiegt, 2015. "'Manufacturing or Services - That is (not) the Question': The Role of Manufacturing and Services in OECD Economies," OECD Science, Technology and Industry Policy Papers 19, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fiorini, Matteo & Hoekman, Bernard, 2018. "Services trade policy and sustainable development," World Development, Elsevier, vol. 112(C), pages 1-12.
    2. Jieun Choi, 2016. "Competitiveness of the Kyrgyz Economy in the Wake of Accession to the Eurasian Customs Union," World Bank Publications - Reports 24252, The World Bank Group.
    3. Fiorini, Matteo; Lebrand, Mathilde, 2016. "The Political Economy of Services Trade Agreements," Economics Working Papers ECO2016/05, European University Institute.
    4. Roy, Martin, 2019. "Elevating services: Services trade policy, WTO commitments, and their role in economic development and trade integration," WTO Staff Working Papers ERSD-2019-01, World Trade Organization (WTO), Economic Research and Statistics Division.
    5. Bernard Hoekman, 2017. "Trade in services: Opening markets to create opportunities," WIDER Working Paper Series wp-2017-31, World Institute for Development Economic Research (UNU-WIDER).
    6. Matteo Fiorini & Bernard Hoekman & Clément Malgouyres, 2018. "Services policy reform and manufacturing employment: Evidence from transition economies," The World Economy, Wiley Blackwell, vol. 41(9), pages 2320-2348, September.
    7. Bernard Hoekman, 2017. "Trade in services: Opening markets to create opportunities," WIDER Working Paper Series 031, World Institute for Development Economic Research (UNU-WIDER).
    8. Fida Karam & Chahir Zaki, 2020. "A new dawn for MENA firms: service trade liberalization for more competitive exports," Applied Economics, Taylor & Francis Journals, vol. 52(1), pages 19-35, January.
    9. Beverelli, Cosimo & Fiorini, Matteo & Hoekman, Bernard, 2017. "Services trade policy and manufacturing productivity: The role of institutions," Journal of International Economics, Elsevier, vol. 104(C), pages 166-182.
    10. Sèna K. Gnangnon, 2021. "Aid for Trade and services export diversification in recipient countries," Australian Economic Papers, Wiley Blackwell, vol. 60(2), pages 189-225, June.
    11. Su, Xiaoyan & Anwar, Sajid & Zhou, Ying & Tang, Xuan, 2020. "Services trade restrictiveness and manufacturing export sophistication," The North American Journal of Economics and Finance, Elsevier, vol. 51(C).
    12. Baldwin, Richard & Forslid, Rikard, 2023. "Globotics and Development: When Manufacturing Is Jobless and Services Are Tradeable," World Trade Review, Cambridge University Press, vol. 22(3-4), pages 302-311, October.
    13. Holger Görg & Liza Jabbour, 2016. "Availability of Business Services and Outward Investment: Evidence from French Firms," Review of International Economics, Wiley Blackwell, vol. 24(4), pages 797-819, September.
    14. Tarr, David G., 2013. "Putting Services and Foreign Direct Investment with Endogenous Productivity Effects in Computable General Equilibrium Models," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 303-377, Elsevier.
    15. Björn Thor Arnarson & Joakim Gullstrand, 2022. "Linking local services to global manufactures," Scandinavian Journal of Economics, Wiley Blackwell, vol. 124(1), pages 3-34, January.
    16. Tarr, David, 2012. "Impact of services liberalization on industry productivity, exports and development : six empirical studies in the transition countries," Policy Research Working Paper Series 6023, The World Bank.
    17. Kym Anderson, 2016. "Agricultural Trade, Policy Reforms, and Global Food Security," Palgrave Studies in Agricultural Economics and Food Policy, Palgrave Macmillan, number 978-1-137-46925-0, December.
    18. Godfrey Madigu, 2014. "The influence of services on firm productivity in Sub-saharan Africa," NCID Working Papers 02/2014, Navarra Center for International Development, University of Navarra.
    19. Sonia Mukherjee, 2018. "Services Outsourcing and Productivity Growth," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 19(2), pages 192-209, September.
    20. Bernard Hoekman & Ben Shepherd, 2017. "Services Productivity, Trade Policy and Manufacturing Exports," The World Economy, Wiley Blackwell, vol. 40(3), pages 499-516, March.

    More about this item

    Keywords

    Philippines; services; global value chains; manufacturing; trade; value added; wholesale; retail;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:phd:dpaper:dp_2016-46. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Aniceto Orbeta (email available below). General contact details of provider: https://edirc.repec.org/data/pidgvph.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.