Working Papers, School of Business, Örebro University
Servification of Firms and Trade Policy Implications
Abstract: In the OECD countries, the decline of manufacturing and
its employment implications have long been matters of concern. Recently,
policymakers in several countries have set out to achieve
reindustrialization. The servicification of firms is related to these
concerns and aspirations. However, servicification and particularly its
role in trade policy have received limited attention. I review micro-level
evidence and discuss implications. I find that imported, domestic and
exported services are all important to contemporary firm competitiveness
and participation in international value chains. Therefore, historic
policymaking divides between trade in manufactures and services, between
export and import interests, and among modes of supply are becoming less
relevant. I conclude by suggesting potential steps forward.
Keywords: Servicification; services; manufacturing; deindustrialization; offshoring; onshoring; trade; trade policy; GATT; WTO; Mode 4; (follow links to similar papers)
JEL-Codes: F13; F15; L16; L24; L60; O14; (follow links to similar papers)
44 pages, January 12, 2015, Revised May 17, 2016
Previous title: "Servification of Manufacturing Firms Makes Divides in Trade Policy-Making Antiquated"
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- This paper is published as:
Lodefalk, Magnus, (2016), 'Servification of Firms and Trade Policy Implications', World Trade Review
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