DOCSLIB.ORG

Study on the Relation Between Industry and Services in Terms of Productivity and Value Creation

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Study on the Relation Between Industry and Services in Terms of Productivity and Value Creation Study on the relation between industry and services in terms of productivity and value creation Final report Study for the Directorate-General for Enterprise and Industry Vienna, 30th October 2014 Study on the relation between industry and services in terms of productivity and value creation Within the Framework Contract for Industrial Competitiveness and Market Performance – ENTR/90/PP/2011/FC Client: DG Enterprise and Industry Compiled by the following partners of the ECSIP consortium: wiiw, Ifo and Ecorys Robert Stehrer (wiiw, coordinator), Paul Baker (Ecorys), Neil Foster-McGregor (wiiw), Johannes Koenen (Ifo), Sandra Leitner (wiiw), Julia Schricker (Ifo), Thomas Strobel (Ifo), Hans-Günther Vieweg (Ifo), Jurgen Vermeulen (Ecorys), Anastasia Yagafarova (Ecorys) About ECSIP The European Competitiveness and Sustainable Industrial Policy Consortium, ECSIP Consortium for short, is the name chosen by the team of partners, subcontractors and individual experts that have agreed to work as one team for the purpose of the Framework Contract on ‘Industrial Competitiveness and Market Performance’. The Consortium is composed of Ecorys Netherlands (lead partner), Cambridge Econometrics, CASE, CSIL, Danish Technological Institute, Decision, ECIS, Euromonitor, FratiniVergano, Frost & Sullivan, IDEA Consult, IFO Institute, MCI, and wiiw, together with a group of 28 highly skilled and specialised individuals. ECSIP Consortium p/a ECORYS Nederland BV Watermanweg 44 3067 GG Rotterdam P.O. Box 4175 3006 AD Rotterdam The Netherlands T. +31 (0)10 453 8800 F. +31 (0)10 453 87 55 [email protected] The information and views set out in this report are those of the authors and do not necessarily reflect the official opinion of the European Commission. For further information please contact Peder Christensen ([email protected]), the Directorate-General for Enterprise and Industry, the European Commission. 4 Content 1 Introduction ..................................................................................................................................................... 14 1.1 Manufacturing, services and their inter-relatedness ................................................................................. 14 1.2 General framework for exploring manufacturing-services interactions ..................................................... 16 1.2.1 Business services categorisation ..................................................................................................... 16 1.2.2 Broad categorisation of service-industry interactions and productivity impacts ............................... 17 1.2.3 Manufacturing-service interaction along the value chain ................................................................. 18 1.2.4 Industry-service interactions and framework conditions .................................................................. 20 1.3 Overview of study ..................................................................................................................................... 21 2 Performance and interdependence of industries and services ....................................................................... 23 2.1 Manufacturing and services performance ................................................................................................. 23 2.1.1 The importance of (business) services in the economies ................................................................ 23 2.1.2 Differentiated developments of the business services categories .................................................... 29 2.1.3 Performance of manufacturing and services sectors ....................................................................... 31 2.2 Indicators capturing the inter-linkages between manufacturing and services industries........................... 34 2.2.1 Secondary production ...................................................................................................................... 34 2.2.2 Direct cost shares ............................................................................................................................ 36 2.2.3 Imported services cost shares ......................................................................................................... 41 2.2.4 Direct and indirect production linkages ............................................................................................ 44 2.2.5 Domestic and foreign services contents of manufacturing ............................................................... 46 2.3 Summary .................................................................................................................................................. 49 3 Assessing the role of business services linkages for manufacturing performance in EU Member States ...... 50 3.1 Introduction ............................................................................................................................................... 50 3.2 Data and methodology ............................................................................................................................. 50 3.3 Differentiated impact of business services linkages on manufacturing performance ................................ 52 3.4 Summary .................................................................................................................................................. 54 4 Services in the manufacturing value chain ..................................................................................................... 55 4.1 The value chain perspective ..................................................................................................................... 55 4.2 Manufacturing value chains in EU Member States ................................................................................... 59 4.3 Summary .................................................................................................................................................. 61 5 Exploring patterns of manufacturing-services interaction and international linkages for specific country- industry cases ........................................................................................................................................................ 63 5.1 Introduction ............................................................................................................................................... 63 5.2 Methodology ............................................................................................................................................. 63 5.2.1 Interviews......................................................................................................................................... 63 5.2.2 Selection of countries and industries ............................................................................................... 63 5.3 General developments of the selected industries ..................................................................................... 65 5.3.1 Developments of employment and productivity ............................................................................... 65 5 5.3.2 Developments in terms of GDP and the role of services ................................................................. 65 5.3.3 The relative importance of business services .................................................................................. 67 5.3.4 Specific services use in selected countries and industries............................................................... 68 5.4 Qualitative results concerning the manufacturing-services interactions ................................................... 71 5.4.1 Machinery industry ........................................................................................................................... 71 5.4.2 Transport equipment ........................................................................................................................ 74 5.4.3 Textiles and clothing ........................................................................................................................ 81 5.4.4 Food and beverages ........................................................................................................................ 85 5.5 Conclusion ................................................................................................................................................ 88 5.5.1 Industry specificities ......................................................................................................................... 88 5.5.2 Country specificities ......................................................................................................................... 90 6 Cross-border services provision and the international dimension of manufacturing services linkages for specific country-industry cases .............................................................................................................................. 92 6.1 Tradability of services and fragmentation of services supply ....................................................................... 92 6.1.1 Related framework conditions influencing the international trade in services .................................. 93 6.2 Use of imported performance enhancing services.................................................................................... 94 6.2.1 Imports of PE services in selected industries and countries ...........................................................
Load more

Recommended publications
  • Charting a Growth Path for Iceland Acknowledgements
    McKinsey Scandinavia A synopsis can feature on the cover. It is recommended that it is kept short, so that it does not compete with the images and title. Charting a Growth Path for Iceland Acknowledgements We wish to acknowledge the many representatives of Icelandic companies, industry associations, government organization, political parties and other organizations that have contributed valuable input and discussions over the course of this project. We would also like to acknowledge Statistics Iceland, Creditinfo, Datamarket and Heimur Publishing for their assistance in collecting and processing data. We have had the privilege of the invaluable support of an academic advisor – Friðrik Már Baldursson, Professor at Reykjavik University. A number of local experts have also provided us with a discerning perspective on Iceland’s core industries. Finally, Reykjavik University has provided us with excellent logistical support during the time we have spent in Iceland. The team driving the work has included Klemens Hjartar, Atli Knutsson, Martin Bech Holte, Svein Harald Øygard, Martin Hjerpe, Frosti Olafsson, Marie Louise Bunckenburg and Halldor Sigurdsson, and we have also been helped by the great enthusiasm, support and knowledge of our colleagues at McKinsey – both at McKinsey Global Institute, in Scandinavia and around the World. The photos in this report are courtesy of Pálmi Einarsson and Dimitri Siavelis. The cover photo of Gerður Helgadóttir’s (1928–1975) mosaic artwork on the Icelandic custom house, is made available courtesy of her relatives. Produced by Glasmalerei Dr. H. Oidtmann, and revealed on September 7, 1973, this mosaic is one of the most defining landmarks in Reykjavik. About McKinsey & Company McKinsey & Company is a management consultancy firm that helps many of the world’s leading corporations, institutions and governments address their strategic challenges.
    [Show full text]
  • Copyright © Pinsent Masons LLP 2008
    I Pinsent Masons Water Yearbook 2008-2009 Copyright © Pinsent Masons LLP 2008 Published by Pinsent Masons LLP Pinsent Masons LLP 30 Aylesbury Street London EC1R 0ER Telephone: 020 7490 4000 Facsimile: 020 7490 2545 Email: [email protected] Website: www.pinsentmasons.com ISBN (10) 0 9551747 4 0 ISBN (13) 978 0 9551747 42 Previous editions: Pinsent Masons Water Yearbook 2007 – 2008 ISBN 0-9551747-3-2 Pinsent Masons Water Yearbook 2006 – 2007 ISBN 0-9551747-1-6 Pinsent Masons Water Yearbook 2005 – 2006 ISBN 0-9537076-9-5 Pinsent Masons Water Yearbook 2004 – 2005 ISBN 0-9537076-7-9 Pinsent Masons Water Yearbook 2003 – 2004 ISBN 0 9537076-5-2 Pinsent Masons Water Yearbook 2002 – 2003 ISBN 0 9537076 4 4 Pinsent Masons Water Yearbook 2001 – 2002 ISBN 0 9537076 2 8 Pinsent Masons Water Yearbook 2000 – 2001 ISBN 0 9537076 1 X Pinsent Masons Water Yearbook 1999 – 2000 ISBN 0 9537076 0 1 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the copyright owner. Whilst every effort has been made to check the accuracy of the information given in this book, readers should always make their own checks. Neither the author nor the publisher accepts any responsibility for misstatements made in it or for misunderstandings arising from it. The main text of this work reflects the information obtained by the author as at October 2008. II Pinsent Masons Water Yearbook 2008-2009 PINSENT MASONS WATER YEARBOOK 2008-2009 PREFACE Human foibles and their impact on every sphere of human endeavour condemn history to repeating itself and in few fields more persistently than the industrial sector, with its water component a contender perhaps for the wooden spoon.
    [Show full text]
  • Chairman's Speech to the Australian Coalition of Service Industries
    Australian Coalition of Service Industries Speech to Council Dinner Canberra 17 June 1998 by Gary Banks Chairman Productivity Commission I have been asked to speak on the reform agenda in Australia and what needs to be done to provide an environment that will lift the performance and competitiveness of Australia’s service industries. The main points I want to make are these: There are things that governments can do to encourage the development of service industries in ways that will improve the living standards of Australians in the next century. Chiefly, these involve winding back barriers to the competitiveness of service industries and indeed other industries as well. But merely pointing out what governments can do is not sufficient. It will also require: • groundwork to ensure that the community is prepared to accept worthwhile reform and • effort from the service industries themselves to support the reform process and improve their own performance. In the midst of the Asian ‘meltdown’ and the wash-up from the Queensland election, these points assume some significance. The service sector It would be a daunting task to attempt to cover with any authority all the activities that comprise the service sector. One of the features of the sector is its diversity. It includes such contrasting activities as telecommunications, cleaning, electricity generation, corner-store retailing, tourism and financial services. Services vary enormously in their application of technology, capital and skill requirements, orientation toward international trade and so on. While there are common elements, what is of concern to one service industry may not always be of concern to another service industry.
    [Show full text]
  • The Economy Goes to College: the Hidden Promise of Higher Education in the Post-Industrial Service
    THE ECONOMY GOES TO COLLEGE The Hidden Promise of Higher Education in the Post-Industrial Service Economy Anthony P. Carnevale & Stephen J. Rose 2015 THE ECONOMY GOES TO COLLEGE The Hidden Promise of Higher Education in the Post-Industrial Service Economy Anthony P. Carnevale & Stephen J. Rose 2015 ACKNOWLEDGMENTS We would like to express our gratitude to the individuals and organizations that have made this report possible. First we thank Lumina Foundation, the Bill & Melinda Gates Foundation, and the Joyce Foun- dation for their support of our research over the past few years, and in particular we are grateful for the sup- port of Jamie Merisotis, Holly Zanville, Daniel Greenstein, Elise Miller, Matthew Muench, and Whitney Smith. We are honored to be partners in their mission of promoting postsecondary access and completion for all Americans. Many have contributed their thoughts and feedback throughout the production of this report: • Raul Jara (while he was at the University of Notre Dame) did a great job in translating the BEA Input- Output tables into the direct and indirect contributions by industry and worker characteristics of 11 final output categories; • Tim Duffy created the design for the cover, the graphic treatment of all of our figures, and the layout of this report; • Ruy Teixeira was involved in preparing the first draft of the report; • Jim McNeil, Paul Lagasse, Kristin Firth, and Nancy Lewis edited the report; • William Dickens and Jeff Strohl provided useful comments on various drafts of the report; and • Ana Castanon, Andrea Porter, Andrew Hanson, and Kim Dancy of the Center shepherded the project through editing and layout.
    [Show full text]
  • The Economy of Iceland Contents
    The Economy of Iceland 2 0 0 E 8 C O N O M Y O F I C E L A N D 2 0 1 0 Contents 5 Introduction 7 1 Recent economic and financial developments Box: The IMF programme 11 13 2 Country and people 17 3 Structure of the economy Boxes: Sectoral limitations on foreign direct investment 19 The ITQ system 21 29 4 The financial system Boxes: The financial crisis in Iceland 32 Resolution committees and winding-up boards 34 Capital controls 38 The offshore foreign exchange market 40 43 5 Public sector Boxes: The fiscal impact of the financial crisis 47 Icesave 56 59 6 Monetary and financial stability policies 65 7 Foreign debt position 71 8 Government, corporate, and household balance sheets 77 9 Appendix Published by: The Central Bank of Iceland, Kalkofnsvegur 1, 150 Reykjavík, Iceland Tel: (+354) 569 9600, fax: (+354) 569 9605 E-mail: [email protected] Website: www.sedlabanki.is Editorial Board and staff: Rannveig Sigurdardóttir, chairman Gerdur Ísberg Jónas Thórdarson Ragnheidur Jónsdóttir Regína Bjarnadóttir Helga Gudmundsdóttir 6 October 2010 Printing: Ísafoldarprentsmiðja Economy of Iceland is also published on the Central Bank of Iceland website. ISSN 1024-6680 Material may be reproduced from Economy of Iceland, but an acknowledgement of source is kindly requested. In Economy of Iceland, monetary figures are generally presented in euros; however, in certain instances, amounts are expressed in US dol- lars or Special Drawing Rights (SDR). The amount in Icelandic krónur is included in parentheses, as most figures are originally in krónur. Stocks at the end of the period are calculated using the period-end exchange rate, whereas flows are calculated using the average exchange rate for the period.
    [Show full text]
  • Recent Trends in US Services Trade: 2016 Annual Report
    United States International Trade Commission Recent Trends in U.S. Services Trade: 2016 Annual Report 2016 Publication Number: 4643 Investigation Number: 332-345 United States International Trade Commission Commissioners Irving A. Williamson, Chairman David S. Johanson, Vice Chairman Dean A. Pinkert Meredith M. Broadbent F. Scott Kieff Rhonda K. Schmidtlein Catherine DeFilippo Director, Office of Operations Jonathan Coleman Director, Office of Industries Address all communications to Secretary to the Commission United States International Trade Commission Washington, DC 20436 Recent Trends in U.S. Services Trade: 2016 Annual Report October 2016 Publication Number: 4643 Investigation Number: 332-345 This report was prepared principally by: Project Leader George Serletis [email protected] Deputy Project Leader Art Chambers [email protected] Principal Authors Chapter 1 Art Chambers [email protected] Cynthia Payne [email protected] Chapter 2 Art Chambers [email protected] George Serletis [email protected] Chapter 3 Logan Cobb [email protected] Chapter 4 Isaac Wohl [email protected] Chapter 5 Isaac Wohl [email protected] Chapter 6 Art Chambers [email protected] Sarah Oliver [email protected] Content Reviewers Heidi Colby-Oizumi and Ravinder Ubee Office of Analysis and Research Services Peg Hausman Judy Edelhoff Jeremy Wise Administrative Support Johnita Glover Monica Sanders Under the direction of Martha Lawless, Chief Services Division Office of Industries Preface This report is the 20th in a series of annual reports on recent trends in U.S. services trade that the U.S. International Trade Commission (Commission) has published. The Commission also publishes an annual companion report on U.S.
    [Show full text]
  • The Economy of Iceland CENTRAL BANK of ICELAND
    The Economy of Iceland CENTRAL BANK OF ICELAND 1998 Autumn The Economy of Iceland October 1998 Published semi-annually by the International Department of the Central Bank of Iceland, 150 Reykjavík, Iceland ISSN 1024-0039 Republic of Iceland People Population .................................................. 272,064 (December 1, 1997) Capital........................................................ Reykjavík, 106,617 (December 1, 1997) Language.................................................... Icelandic; belongs to the Nordic group of Germanic languages Religion...................................................... Evangelical Lutheran (95%) Life expectancy.......................................... Females: 81 years , Males: 76 years Governmental System Government................................................ Constitutional republic Suffrage...................................................... Universal, over 18 years of age Legislature.................................................. Alþingi with 63 members Election term.............................................. Four years Economy Monetary unit............................................. Króna (plural: krónur); currency code: ISK Gross domestic product ............................. 524 billion krónur (US$ 7.4 billion) in 1997 International trade...................................... Exports 36% and imports 36% of GDP in 1997 Per capita GDP .......................................... 1,938 thousand krónur (US$ 26.921) in 1997 Land Geographic size.........................................
    [Show full text]
  • Service Industries and Regional Analysis. New Directions and Challenges
    © Investigaciones Regionales – Journal of Regional Research, 36 (2016) – Pages 107 to 127 Section ARTICLES Service industries and regional analysis. New directions and challenges Juan R. Cuadrado-Roura * Abstract: The service sector currently accounts for the largest share, both in terms of GDP and employment, of all developed economies, as well as many of the so-called emerging or developing ones. In spite of this, it has been the subject of far less research than manufacturing, although the situation has started to change in the past three decades and it must be pointed out that some activities —such as finance, commerce, transport and those most closely linked to tourism— do have significant analytical literature. In any case, this sector is undergoing very notable changes deriving from new technologies and the progress of digitalization, as well as economic globalization, in which services are playing a particularly relevant role. These changes demand specific and in-depth analyses to explain their causes and to understand their spatial and territorial effects. The objective of this work is to underscore the need for greater research effort focusing on the regional and urban aspects of services, and to suggest certain facts and trends that seem particu- larly relevant. Undoubtedly, services should occupy a privileged position in the new frontiers of Regional and Urban Analysis. This work aims to justify that need and pose some topics of interest for new research. JEL Classification: L80; R11; R34; O33. Keywords: Service sector; growth factors; location and concentration; ICT and digitalization; research agenda. RESUMEN: El sector Servicios es hoy el que mayor peso tiene en todas las eco- nomías avanzadas, tanto en términos de PIB como por el número de personas ocu- padas, pero también en muchas de las economías calificadas como emergentes o en proceso de desarrollo.
    [Show full text]
  • CHAPTER 3 Services' Contribution to Manufacturing
    CHAPTER 3 Services’ Contribution to Manufacturing Overview Services are used throughout the manufacturing process and the manufacturing value chain.1 Some services are needed early in the chain (e.g., research and development); some are needed at the end (retailing, maintenance and repair); and some are needed at every stage (telecommunications and financial services).2 Individual manufacturers often require a full spectrum of services.3 In the United States, on average, 25.3 percent of intermediate inputs purchased by manufacturers in 2011 were from the services sector. For certain manufacturing sectors, such as computer and electronic products, this percentage—a measure of “services intensity”—is as high as 47.6 percent. Services can include a wide variety of activities, such as trade, transportation, information, education, health, and financial and professional services.4 The emphasis in this chapter, however, is on business services. Business services are defined as those that are predominantly purchased by other businesses rather than final consumers; examples include legal, data processing, and accounting services, among many others (box 3.1). These services play an important role in manufacturing. In 2008, business services accounted for nearly half of all services purchased by manufacturing sectors. Moreover, business services are dynamic, having grown more rapidly than the services sector as a whole: since 1980, the share of business services in the U.S. economy has increased by 59 percent, more than double the 24 percent share increase of overall services.5 These sectors have benefited strongly from recent technological innovations, particularly those related to information and communications technologies (ICT), and in turn provide the benefits of improved productivity to the buyers of their products, many of whom are manufacturers.
    [Show full text]
  • An Overview and Examination of the Vietnamese Service Sector
    No. ID-033 OFFICE OF INDUSTRIES WORKING PAPER U.S. INTERNATIONAL TRADE COMMISSION An Overview and Examination of the Vietnamese Service Sector Lisa Alejandro Eric Forden Erick Oh Joann Peterson Samantha Pham Matthew Reisman George Serletis Danielle Vu Isaac Wohl August 2012 Office of Industries working papers are the result of ongoing professional research by U.S. International Trade Commission (USITC) staff and are solely meant to represent the opinions and professional research of individual authors. These papers are not meant to represent in any way the views of the USITC or any of its individual Commissioners. Working papers are circulated to promote the exchange of ideas between USITC staff and experts outside the USITC, and to promote the professional development of staff by encouraging outside critiques of staff research. Address correspondence to: Office of Industries International Trade Commission Washington, DC 20436 USA An Overview and Examination of the Vietnamese Services Sector Lisa Alejandro Eric Forden Erick Oh Joann Peterson Samantha Pham Matthew Reisman George Serletis Danielle Vu Isaac Wohl Abstract Vietnam is growing rapidly as it transitions from a state-planned economy to a hybrid economy with an expanded private sector. Besides broadening its international trade relationships, in recent years Vietnam has committed to liberalizing its industries and strengthening its intellectual property laws through bilateral treaties, regional associations, and accession to the World Trade Organization. Service industries account for a growing share of Vietnam's economy, as new businesses seek services like banking and logistics while consumers with rising income demand education, retail, and telecommunication services. Liberalization and foreign investment have increased the supply of services in Vietnam, but many industries are still hampered by shortages of skilled workers and good infrastructure, and by a weak business environment in which regulations impede commerce and state-owned enterprises have many advantages.
    [Show full text]
  • Service Industries and Economic Performance
    SERVICE INDUSTRIES AND ECONOMIC PERFORMANCE U.S. Department of Commerce Economics and Statistics Administration Office of Policy Development March 1996 Service Industries PREFACE ESA’s analytic mission is to explain changes in the structure of U.S. industries and firms that affect the nation’s overall economic performance. The present study examines the character and causes of the economy’s increasing service orientation and considers implications of the shift to services for U.S. economic growth, employment, and competitiveness. The study was prepared by Gerald Moody, Sandra Cooke, Kan Young, and David Henry with the guidance and participation of Warren Farb and Gurmukh Gill. Jeffrey Mayer edited the final report. Everett M. Ehrlich Under Secretary for Economic Affairs Service Industries Service Industries SUMMARY Service Industries and Economic Performance addresses three questions that have troubled economists for more than a decade: whether service-oriented economies can sustain high rates of output growth; whether they can generate large numbers of good jobs; and whether they can compete effectively in global markets. Compared with a generation ago, U.S. service industries now account for a larger share of real output, and a much larger share of employment. Service inputs also comprise more of the embodied value of all the goods and services Americans produce for final use. Powerful forces now at work in the United States and elsewhere give these changes overwhelming momentum. Some of these forces are demographic�e.g., women's increased presence in the workforce and the aging of the population. Some reflect long­ term public choices�e.g., deregulation, defense downsizing, public education and health care programs.
    [Show full text]
  • Value Creation in Service Economy
    The publication co-financed by the European Union from the European Social Fund Value Creation in the Service Economy Andżelika Kuźnar Warsaw School of Economics May 2016 This publication is the result of the project Młodzi projektują zarządzanie co-financed by the -Eu ropean Social Fund within Human Capital Operational Programme, Priority IV “Higher education and science,” Measure 4.1 “Strengthening and development of didactic potential of universities and increasing the number of graduates from faculties of key importance for knowledge-based economy,” Sub-measure 4.1.1 “Strengthening and development of didactic potential of universities.” Publisher: Szkoła Główna Handlowa w Warszawie (SGH) Reviewer: Włodzimierz Januszkiewicz First Edition © Copyright by Szkoła Główna Handlowa w Warszawie (SGH) al. Niepodległości 162, 02-554 Warszawa, Polska Free copy ISBN: 978-83-65416-64-3 Circulation: 200 copies Cover design: Monika Trypuz Typesetting, printing: Agencja Reklamowa TOP 87-800 Włocławek, ul. Toruńska 148 tel. 54 423 20 40, fax 54 423 20 80 e-mail: [email protected] 3 Table of contents Introduction . 9 Chapter 1 – Services in economic thought . 11 1.1. Classical approach – productive and non-productive activities (1700-1850) . 12 1.2. All activities are productive. Every activity is a service (1850-1930) . 15 1.3. The theory of the three sectors. Post-industrial society (1930-1965). 16 1.4. Neo-industrial concepts (1975 – today) . 18 Chapter 2 – Services sector in the modern economy . 20 2.1. What are services and what are their characteristics? . 20 2.2. The increased importance of the services sector in economies . 25 2.2.1.
    [Show full text]