Trade in Producer Services and Returns due to Specialization under Monopolistic Competition

François, Joseph

doi:10.2307/135522

Cited by 107 publications

(54 citation statements)

References 12 publications

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“…The most important papers are papers by Markusen (1989); Francois (1990a;1990b); Markusen and Venables (1998) and Markusen et al (2005). The key ideas behind all these papers are that the providers of services increase the productivity of the users of services in manufacturing, agriculture and in the service sectors themselves.…”

Section: Country Level Studiesmentioning

confidence: 99%

“…Results also indicated that foreign services were partial equilibrium substitutes for domestic skilled labor and service trade could provide crucial inputs which might reverse the comparative advantage in final goods. Francois (1990a) in his study noted that the growth of the intermediation services was an important determinant of overall economic growth because they allowed specialization to occur. The reason was as firms increased their size and specialized more labor, more activity was needed to be devoted.…”

Section: Country Level Studiesmentioning

confidence: 99%

“…The Indian manufacturing firms are now readily purchasing services from external specialized bodies or agencies. This is due to the fact that the competitiveness of the manufacturing firms depend on the low cost availability of efficient producer services (Francois and Hoekman, 2010).…”

Section: Introductionmentioning

confidence: 99%

“…And further, the usage of higher quality services can help the firm to increase its competitiveness and efficiency in times of stiffer competition and globalization. Competitiveness of the manufacturing firms also depends on the availability of low cost high efficiency producer services (Francois and Hoekman, 2010). Hence, the manufacturing firms are contracting out more services which are efficient rather than producing then within the inhouse (Pilat and Wölfl, 2005).…”

Section: Introductionmentioning

confidence: 99%

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The Role of Services in Total Productivity Growth of Indian Manufacturing Firms: A Firm Level Analysis Since 2000

Mukherjee

2017

Asian Journal of Economics and Empirical Research

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Services were considered non-tradable in the initial stages (in the mid-eighties). However, with the advent of Information Communication and Technology (ICT) and other modern services, services have become increasingly tradable day by day. Since, the eighties, there had been a rapid expansion of the Indian service sector, surpassing the agriculture and manufacturing sector. With the expansion, important services like communication, financial, transport, insurance, research and development, business services, legal services and other professional services etc. were on high demand in the manufacturing sector. Absence of such important services would act as a bottleneck in major investment projects of a manufacturing firm. Specialized services obtained from the external agency would help the firm to focus on its non-core activities and improve its productivity growth and competitiveness. Against this backdrop, the study mainly examines the role of services in enhancing the productivity growth of the Indian Manufacturing firms since 2000. The firm level data was collected from Prowess database. The study was done at the aggregate and disaggregated level. The results conclude that services have been playing a positive role in enhancing the productivity growth of the manufacturing sector and also for the industry group like textile group, machinery group etc. However, for the Electronics Group services did not play a significant role so far.

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Section: Country Level Studiesmentioning

confidence: 99%

Section: Country Level Studiesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

The Role of Services in Total Productivity Growth of Indian Manufacturing Firms: A Firm Level Analysis Since 2000

Mukherjee

2017

Asian Journal of Economics and Empirical Research

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“…They play an important distinct role in coordinating the production processes needed to generate ever more differentiated goods and to realize scale economies. The associated organizational innovations and expansion of 'logistics' (network) services yields productivity gains that in turn should affect economy-wide growth performance (Francois, 1988(Francois, ,1990aDeardorff, 2001).…”

Section: Intermediation and Productivity Channelsmentioning

confidence: 99%

CGE Modeling of Market Access in Services

Christen¹,

François²,

Hoekman³

2012

Policy Research Working Papers

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Bernard Hoekman World Bank, and CEPRJune 2012 * We are grateful to Peter Dixon for tremendous patience, and to both him and David Tarr for very constructive and helpful comments on earlier versions of this paper. All views expressed are strictly personal and should not be attributed to the World Bank. This is a "working draft" version of a handbook chapter. AbstractThis paper examines how the applied multi-sector computable general equilibrium (CGE) literature has moved into quantification of the impacts of greater market access for services. This includes discussion of multisector linkages to the service sector, as well both measuring barriers to trade and investment (generally with a mix of firm surveys, price comparisons, and econometrics), and how changes in these barriers, however measured, have been implemented in the CGE literature. Three challenges are highlighted. The first is identification of how trade in services takes place and how market access is therefore affected by policy. The second is to find data sufficiently robust for modeling purposes. The third, linked to the data problem, is to quantify the barriers to be examined. Significant progress has been made in modeling foreign direct investment and linking this to productivity, which turns out to be important. The paper also provides an example of modeling productivity linkages to openness and domestic regulation, with an applied CGE model of Italy. This illustrates cross-sector linkages and the integration of economic data and policy measures to define service sector experiments. Priorities for future research include better modeling of market structure, the linkages between sectors and the complementarities between different modes of supplying services.

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