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Has Liberalization Strengthened the Link between Services and Manufacturing?

Author

Listed:
  • Pasadilla, Gloria
  • Liao, Christine Marie
Abstract
Globalization and pressure from increased competition have led to “splintering†of in-house services from formerly integrated manufacturing firms in developed economies and, at the same time, to an increase in “outsourcing†of these same services. These two trends have caused a stronger linkage in services and manufacturing in economic data because services which were previously lumped with manufacturing are now recorded separately and, in a sense, given identity. The study tries to shed some light on this linkage in the Philippine case. Contrary to experiences of other countries, the contribution of services to growth in manufacturing decreased from the 1980s to the 1990s. The manufacturing sector’s usage of services also declined from the first to the second period. This result suggests that the Philippines has caught the “splintering†trend quite late and is, perhaps, only now catching on that the available 1990s data have not yet been able to capture.

Suggested Citation

  • Pasadilla, Gloria & Liao, Christine Marie, 2007. "Has Liberalization Strengthened the Link between Services and Manufacturing?," Discussion Papers DP 2007-13, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:dpaper:dp_2007-13
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    References listed on IDEAS

    as
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    Cited by:

    1. Virginia Di Nino, 2015. "�The phenomenal CAT�: firms clawing the goods of others," Questioni di Economia e Finanza (Occasional Papers) 281, Bank of Italy, Economic Research and International Relations Area.

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    More about this item

    Keywords

    globalization; splintering; outsourcing; services-manufacturing link; growth accounting;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade

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