Services Development and Comparative Advantage in Manufacturing
Most manufacturing activities use inputs from the financial and business services sectors. But these services sectors also compete for resources with manufacturing activities, provoking concerns about de-industrialization -- financial services in i...
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/397091526992884480/Services-development-and-comparative-advantage-in-manufacturing http://hdl.handle.net/10986/29860 |
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okr-10986-298602021-06-08T14:42:46Z Services Development and Comparative Advantage in Manufacturing Liu, Xuepeng Mattoo, Aaditya Wang, Zhi Wei, Shang-Jin MANUFACTURING SECTOR SERVICES SECTOR SERVICES TRADE COMPARATIVE ADVANTAGE VALUE ADDED MANUFACTURING EXPORTS EXPORT COMPETITIVENESS FINANCIAL SERVICES BUSINESS DEVELOPMENT SERVICES Most manufacturing activities use inputs from the financial and business services sectors. But these services sectors also compete for resources with manufacturing activities, provoking concerns about de-industrialization -- financial services in industrial countries like the United States and the United Kingdom, and business services in developing countries like India and the Philippines. This paper examines the implications of services development for the export performance of manufacturing sectors. It develops a methodology to quantify the indirect role of services in international trade in goods and constructs new measures of revealed comparative advantage based on domestic value added in gross exports. The paper shows that the development of financial and business services enhances the revealed comparative advantage of manufacturing sectors that use these services intensively but not that of other manufacturing sectors. It also finds that a country can partially overcome the handicap of an underdeveloped domestic services sector by relying more on imported services inputs. Thus, lower services trade barriers in developing countries can help to promote their manufacturing exports. 2018-05-23T20:15:34Z 2018-05-23T20:15:34Z 2018-05 Working Paper http://documents.worldbank.org/curated/en/397091526992884480/Services-development-and-comparative-advantage-in-manufacturing http://hdl.handle.net/10986/29860 English Policy Research Working Paper;No. 8450 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper India Philippines |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
MANUFACTURING SECTOR SERVICES SECTOR SERVICES TRADE COMPARATIVE ADVANTAGE VALUE ADDED MANUFACTURING EXPORTS EXPORT COMPETITIVENESS FINANCIAL SERVICES BUSINESS DEVELOPMENT SERVICES |
| spellingShingle |
MANUFACTURING SECTOR SERVICES SECTOR SERVICES TRADE COMPARATIVE ADVANTAGE VALUE ADDED MANUFACTURING EXPORTS EXPORT COMPETITIVENESS FINANCIAL SERVICES BUSINESS DEVELOPMENT SERVICES Liu, Xuepeng Mattoo, Aaditya Wang, Zhi Wei, Shang-Jin Services Development and Comparative Advantage in Manufacturing |
| geographic_facet |
India Philippines |
| relation |
Policy Research Working Paper;No. 8450 |
| description |
Most manufacturing activities use inputs
from the financial and business services sectors. But these
services sectors also compete for resources with
manufacturing activities, provoking concerns about
de-industrialization -- financial services in industrial
countries like the United States and the United Kingdom, and
business services in developing countries like India and the
Philippines. This paper examines the implications of
services development for the export performance of
manufacturing sectors. It develops a methodology to quantify
the indirect role of services in international trade in
goods and constructs new measures of revealed comparative
advantage based on domestic value added in gross exports.
The paper shows that the development of financial and
business services enhances the revealed comparative
advantage of manufacturing sectors that use these services
intensively but not that of other manufacturing sectors. It
also finds that a country can partially overcome the
handicap of an underdeveloped domestic services sector by
relying more on imported services inputs. Thus, lower
services trade barriers in developing countries can help to
promote their manufacturing exports. |
| format |
Working Paper |
| author |
Liu, Xuepeng Mattoo, Aaditya Wang, Zhi Wei, Shang-Jin |
| author_facet |
Liu, Xuepeng Mattoo, Aaditya Wang, Zhi Wei, Shang-Jin |
| author_sort |
Liu, Xuepeng |
| title |
Services Development and Comparative Advantage in Manufacturing |
| title_short |
Services Development and Comparative Advantage in Manufacturing |
| title_full |
Services Development and Comparative Advantage in Manufacturing |
| title_fullStr |
Services Development and Comparative Advantage in Manufacturing |
| title_full_unstemmed |
Services Development and Comparative Advantage in Manufacturing |
| title_sort |
services development and comparative advantage in manufacturing |
| publisher |
World Bank, Washington, DC |
| publishDate |
2018 |
| url |
http://documents.worldbank.org/curated/en/397091526992884480/Services-development-and-comparative-advantage-in-manufacturing http://hdl.handle.net/10986/29860 |
| _version_ |
1764470571524947968 |