Embodied Services: “Upstream” Enabler Services Embodied in Exports of Manufactured Goods In 2015, about one-third of the value of gross manufactures’ exports among OECD countries was attributable to the value added of embodied services, with distribution and business services making the largest contributions. The corresponding share for low- and middle-income economies was about 29 percent (figure 4.15). The aggregate services value added in exports of manufactured goods for high-income economies remained largely unchanged between 2005 and 2015, but it increased in Asia, particularly because of the higher domestic services content in China’s manufactures’ exports (WTO 2019). These estimates of services value added embodied in manufactures’ exports, based on arm’s-length transactions, is a lower bound for the servicification of manufacturing since these services are often produced “in house” by exporting companies (Low 2013). Using a combination of labor force surveys and the OECD-WTO Trade in ValueAdded (TiVA) database, Miroudot and Cadestin (2017) estimate for a sample of
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Share of services value added in manufactures' exports (%)
FIGURE 4.15 About One-Third of the Value of Gross Manufactures’ Exports Is Attributable to Services Inputs Services value added in exports of manufactured goods, OECD and non-OECD economies, by services subsector, 2015
Global innovators
Low-skill tradables OECD
Low-skill domestic
Skill-intensive social services
Non-OECD
Source: Calculations based on the Trade in Value Added (TiVA) database of the Organisation for Economic Co-operation and Development (OECD). Note: “Non-OECD economies” include Argentina; Brazil; Brunei Darussalam; Bulgaria; Cambodia; China; Colombia; Costa Rica; Croatia; Cyprus; Hong Kong SAR, China; India; Indonesia; Kazakhstan; Malaysia; Malta; Morocco; Peru; the Philippines; Romania; the Russian Federation; Saudi Arabia; Singapore; South Africa; Taiwan, China; Thailand; Tunisia; and Vietnam. ICT = information and communication technology.
Look Before You Leap: Services Before Manufacturing?
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