Crossing Industrial Borders: German Manufactures as Services Exporters
University of Milan - Centro Studi Luca d'Agliano (LdA)
March 1, 2012
Centro Studi Luca d'Agliano Development Studies Working Paper No. 329
Manufacturing firms increasingly engage in service trade activities. Microlevel data show that German manufacturers account for roughly 25% of German cross-border producer service exports. I have found that particular construction, engineering, and R&D services are exported. The machinery industries and automobile and chemicals producers dominate the overall pattern. The types of services exported vary strongly across industries. Furthermore, export activities are concentrated on a few large exporters. Service exports of advertising, data processing, and R&D services are found to likely support foreign affiliates of firms. However, these headquarter services are only infrequently observable. Much more important are construction and engineering services exported by machinery firms. These might represent installation and maintenance services exported to complement the supply of machinery. Beyond the support of foreign affiliates of firms, R&D services exports might be also important to transfer knowledge between unaffiliated firms at different stages of the value chain.
Number of Pages in PDF File: 35
Keywords: services exports, manufacturing sector, goods trade, multinational firms
JEL Classification: D22, F14, F23, L80
Date posted: May 9, 2012
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