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Crossing Industry Borders: German Manufacturers as Services Exporters

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  • Markus Kelle

Abstract

German manufacturing firms increasingly engage in service trade activities. Micro-level data show that producer service exports of German manufacturers amounted to EUR 30 billion in 2005. In particular, construction, engineering and R&D services are exported. The machinery industries and automobile and chemicals producers dominate the overall pattern. The types of services exported vary strongly across industries. Furthermore, export activities are concentrated on a few large exporters. Service exports of advertising, data processing and R&D services are found to likely support foreign affiliates of firms. However, these headquarter services are only infrequently observable. Much more important are construction and engineering services exported by machinery firms. These might represent installation and maintenance services exported to complement the supply of machinery. Beyond the support of foreign production affiliates of firms, R&D services exports generally represent the transfer of knowledge and technology. These might be relevant also in R&D cooperations of firms or when firms have partnerships with foreign suppliers or buyers of intermediate products.

Suggested Citation

  • Markus Kelle, 2012. "Crossing Industry Borders: German Manufacturers as Services Exporters," wiiw Working Papers 92, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:wpaper:92
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    References listed on IDEAS

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    Cited by:

    1. Lodefalk, Magnus, 2017. "Servicification of Firms and Trade Policy Implications," World Trade Review, Cambridge University Press, vol. 16(1), pages 59-83, January.
    2. Sebastian Leitner, 2015. "Drivers of wealth inequality in euro area countries," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 137, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    3. Peter Egger & Valeria Merlo & Georg Wamser, 2017. "Cross-country Services Versus Manufacturing Activity of Multinational Firms in Response to Services Versus Goods Policy," The World Economy, Wiley Blackwell, vol. 40(3), pages 490-498, March.
    4. Bernard Hoekman & Ben Shepherd, 2017. "Services Productivity, Trade Policy and Manufacturing Exports," The World Economy, Wiley Blackwell, vol. 40(3), pages 499-516, March.
    5. Stefano Federico & Enrico Tosti, 2017. "Exporters and Importers of Services: Firm-Level Evidence on Italy," The World Economy, Wiley Blackwell, vol. 40(10), pages 2078-2096, October.
    6. Arne J. Nagengast & Robert Stehrer, 2016. "The Great Collapse in Value Added Trade," Review of International Economics, Wiley Blackwell, vol. 24(2), pages 392-421, May.
    7. Johannes Pöschl & Katarina Valkova, 2015. "Welfare State Regimes and Social Determinants of Health in Europe," wiiw Working Papers 118, The Vienna Institute for International Economic Studies, wiiw.
    8. Patricia Walter, 2017. "Anatomy of Austria’s trade in services," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 33-52.
    9. Roman Stöllinger, 2015. "Agglomeration and FDI: Bringing International Production Linkages into the Picture," wiiw Working Papers 121, The Vienna Institute for International Economic Studies, wiiw.
    10. Konstantins Benkovskis & Olegs Tkacevs, 2015. "Everything you always wanted to know about Latvia's service exporters (but were afraid to ask)," Working Papers 2015/06, Latvijas Banka.

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    More about this item

    Keywords

    services exports; manufacturing sector; goods trade; multinational firms;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L80 - Industrial Organization - - Industry Studies: Services - - - General

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