International trade in services: Some evidence on the influence of international servicification of manufacturing

Abstract

Objective: The aim of the article is to discuss the impact of international servicification of manufacturing on international trade in services and its modes.

Research Design & Methods: The article is of a descriptive character, based on comprehensive literature review. It presents an analytical frameworks of international servicification of manufacturing (i.e. its concept, constituents and measuring methods) as well as an overview of main findings of selected empirical research on this phenomenon carried out by WTO, National Board of Trade and OECD.

Findings: The analysis shows that services as inputs, outputs as well as in-house activities within manufacturing firms constitute a key component of manufacturing process and manufacturing products. As the globalization progresses, the international dimension of the servicification of manufacturing, i.e. international servicification, increases. International servicification means that manufacturing sector strongly affects trade in services and this influence goes far beyond the scope of GATS’ modes of supplying services. In addition to cross-border transactions and rendering services through the movement of labour and capital this trade encompasses services embodied in exported or imported goods which are traded indirectly across borders.

Contribution & Value Added: An added value of this paper is the description of mechanisms and channels of international servicification’ impact on modes of service supply.

Keywords

services, servicification of manufacturing, trade in services, global supply chain, modes of services supply

Author Biography

Elżbieta Bombińska

Assistant Professor in the Department of International Trade, PhD in economics, author of the publications on international trade and international business. Research interests: international trade in services, foreign direct investments.

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