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Linking Services to Manufacturing Exports

Arnarson, Björn Thor LU and Gullstrand, Joakim LU (2016) In Working Papers 2016(27).
Abstract
In this paper we analyse the interplay between services and manufacturing. This is done through identifying and quantifying a direct link between manufacturing exports and the sales by service providers. For identification of this transmittance mechanism, with the help of highly detailed geographic data, we create a Localised Export Exposure (LEE) variable that captures the variation in demand for service inputs based on nearby exporters. Since service firms are much less geographically specialised than manufacturing firms, we observe a high variation in their exposure to demand changes. This spatial variation in the demand for service inputs results from a variation in local export volumes (LEE); which is used to assess the interplay... (More)
In this paper we analyse the interplay between services and manufacturing. This is done through identifying and quantifying a direct link between manufacturing exports and the sales by service providers. For identification of this transmittance mechanism, with the help of highly detailed geographic data, we create a Localised Export Exposure (LEE) variable that captures the variation in demand for service inputs based on nearby exporters. Since service firms are much less geographically specialised than manufacturing firms, we observe a high variation in their exposure to demand changes. This spatial variation in the demand for service inputs results from a variation in local export volumes (LEE); which is used to assess the interplay between manufacturing exports and services. Our results show that a 1% increase in exports increases the volume of sales of service firms by 0.2% (and employment within the firm by 0.06%). The results show also that the link is highly local and the strongest impact is within 20 km of the shock. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Working Paper
publication status
published
subject
keywords
spillovers, services, manufacturing exports, input-output linkages, F10, F14, F60
in
Working Papers
volume
2016
issue
27
pages
31 pages
publisher
Department of Economics, Lund University
language
English
LU publication?
yes
id
24a05f83-090d-4be1-b79d-d0b22e9c1f04
alternative location
http://swopec.hhs.se/lunewp/abs/lunewp2016_027.htm
http://swopec.hhs.se/lunewp/abs/lunewp2016_027.htm
date added to LUP
2016-10-19 10:59:22
date last changed
2016-12-28 08:15:14
@misc{24a05f83-090d-4be1-b79d-d0b22e9c1f04,
  abstract     = {In this paper we analyse the interplay between services and manufacturing. This is done through identifying and quantifying a direct link between manufacturing exports and the sales by service providers. For identification of this transmittance mechanism, with the help of highly detailed geographic data, we create a Localised Export Exposure (LEE) variable that captures the variation in demand for service inputs based on nearby exporters. Since service firms are much less geographically specialised than manufacturing firms, we observe a high variation in their exposure to demand changes. This spatial variation in the demand for service inputs results from a variation in local export volumes (LEE); which is used to assess the interplay between manufacturing exports and services. Our results show that a 1% increase in exports increases the volume of sales of service firms by 0.2% (and employment within the firm by 0.06%). The results show also that the link is highly local and the strongest impact is within 20 km of the shock.},
  author       = {Arnarson, Björn Thor and Gullstrand, Joakim},
  keyword      = {spillovers,services,manufacturing exports,input-output linkages,F10,F14,F60},
  language     = {eng},
  month        = {10},
  note         = {Working Paper},
  number       = {27},
  pages        = {31},
  publisher    = {Department of Economics, Lund University },
  series       = {Working Papers},
  title        = {Linking Services to Manufacturing Exports},
  volume       = {2016},
  year         = {2016},
}