Servicification of Manufacturing and Boosting Productivity through Services Sector Reform in Turkey
There is a global trend toward more production, use, and sale of services by manufacturing firms. This phenomenon is known as the servicification of manufacturing. Services inputs as well as services activities within manufacturing firms account fo...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/752341541775831554/Servicification-of-Manufacturing-and-Boosting-Productivity-through-Services-Sector-Reform-in-Turkey http://hdl.handle.net/10986/30849 |
| Summary: | There is a global trend toward more
production, use, and sale of services by manufacturing
firms. This phenomenon is known as the servicification of
manufacturing. Services inputs as well as services
activities within manufacturing firms account for over half
of the value of manufacturing exports. This paper uses a
unique firm-level data set to analyze the link between
servicification and productivity in Turkey. Although
servicification has the potential to boost firm performance,
the opposite appears to be the case in Turkey: manufacturing
firms with service affiliates tend to be less productive.
The type of services produced matters. For instance, firms
that have post-manufacturing (transport and distribution)
service affiliates are particularly less productive.
Regulatory restrictions in services are explored as an
explanatory factor. Productivity gaps appear in the same
areas where services are more restricted, such as in
post-manufacturing services. |
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