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Servicification of Firms and Trade Policy Implications

PublicationArticle (with peer review)
Företagandets villkor, Handelspolitik, Internationell handel, Magnus Lodefalk, Tjänstefiering

Abstract

In the OECD countries, the decline of manufacturing and the employment implications have long been matters of concern. Recently, policymakers in several countries have set out to try and achieve reindustrialization. The servicification of firms is related to these concerns and aspirations. However, servicification, and particularly its role in trade policy, has received limited attention. I review micro-level evidence and discuss its implications. I find that imported, domestic and exported services are all important to contemporary firm competitiveness and participation in international value chains. Therefore, historic policymaking divisions between trade in manufactures and trade in services services, between export and import interests, and among modes of supply are becoming less relevant. I conclude by suggesting potential steps forward.

Lodefalk, M. (2017). Servicification of Firms and Trade Policy Implications. World Trade Review, 16(1), 59-83. DOI: 10.1017/S147474561600029X

Based on content

Temporary expats for exports: micro-level evidence
Article (with peer review)Publication
Lodefalk, M.
Publication year

2016

Abstract

We analyze the relation between temporary expats in firms and exports, exploiting micro-level panel data on migration and trade. Temporary expats are positively associated with exports. Their link with export intensity is larger for services than for merchandise and for exports of differentiated services and merchandise than for exports of homogeneous products. Our evidence also suggests that temporary expats are positively related to exports by assisting firms in overcoming informal destination-specific barriers. Overall, our findings suggest the importance of the temporary movement of persons for providing firms with up-to-date links to export markets.

Servicification of Firms and Trade Policy Implications
Artikel (med peer review)Publication
Lodefalk, M.
Publication year

2017

Published in
Abstract

In the OECD countries, the decline of manufacturing and the employment implications have long been matters of concern. Recently, policymakers in several countries have set out to try and achieve reindustrialization. The servicification of firms is related to these concerns and aspirations. However, servicification, and particularly its role in trade policy, has received limited attention. I review micro-level evidence and discuss its implications. I find that imported, domestic and exported services are all important to contemporary firm competitiveness and participation in international value chains. Therefore, historic policymaking divisions between trade in manufactures and trade in services services, between export and import interests, and among modes of supply are becoming less relevant. I conclude by suggesting potential steps forward.

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