Crossing Industrial Borders: German Manufactures as Services Exporters

35 Pages Posted: 9 May 2012  

Markus Kelle

University of Milan - Centro Studi Luca d'Agliano (LdA)

Date Written: March 1, 2012

Abstract

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.

Keywords: services exports, manufacturing sector, goods trade, multinational firms

JEL Classification: D22, F14, F23, L80

Suggested Citation

Kelle, Markus, Crossing Industrial Borders: German Manufactures as Services Exporters (March 1, 2012). Centro Studi Luca d'Agliano Development Studies Working Paper No. 329. Available at SSRN: https://ssrn.com/abstract=2054737 or http://dx.doi.org/10.2139/ssrn.2054737

Markus Kelle (Contact Author)

University of Milan - Centro Studi Luca d'Agliano (LdA) ( email )

Via P. Amedeo 34
Milano, Mi 20122
Italy

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