Services strengthen macroeconomic relevance of manufacturing industry
Udo Ludwig, Hans-Ulrich Brautzsch, Brigitte Loose
Wirtschaftsdienst,
2011
Abstract
In line with the hypothesis that in the course of real income growth the structure of value added and employment shifts from the primary to the secondary to the tertiary sector of production the relevance of manufacturing industry shrinks. For Germany this secular trend was confirmed for all decades beginning with the year 1970. In this paper, however, the manufactured final products are the starting point of the analysis. Using the input-output method here, it is shown that as a result of the increasing interdependence between the service sector and manufacturing industry the manufactured final products absorb a growing share of the total value added.
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Mit 55 zum alten Eisen? Eine Analyse des Alterseinflusses auf die Produktivität anhand des LIAB
Lutz Schneider
Zeitschrift für Arbeitsmarktforschung,
No. 1,
2007
Abstract
"Against the background of an aging labor force in Germany and insufficient job opportunities for older people, the paper raises the question as to how age affects the productivity of workers. Due to opposite developments of certain human abilities across the life span, gerontological research supports the hypothesis of an inverted u-shaped age-productivity profile. Middle aged workers are supposed to achieve the highest productivity level, whereas both young and old employees should show lower productivity levels. The analysis is carried out on the basis of a new linked employer-employee dataset of the Institute for Employment Research (LIAB). Within a production function framework it is tested econometrically whether the age composition of a firm's workforce affects its productivity and if so in what way. The regressions are carried out separately for the manufacturing and the service sectors. The cross-section estimations of the year 2003 reveal a positive correlation between firm productivity and the share of middle-aged employees (35-44 years old). Furthermore, in the manufacturing sector, a negative correlation between productivity and the proportion of the youngest age group (15-24 years old) can be seen. Thus the results provide evidence of an inverted u-shaped age-productivity profile in this sector. In the service sector, in contrast, the share of the youngest workers seems to increase productivity compared to the reference group of the 55-64 year-old employees.
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Structural Change during Transition: Is Russia Becoming a Service Economy?
Albrecht Kauffmann
Volkswirtschaftliche Diskussionsbeiträge der Wirtschafts- und Sozialwissenschaftlichen Fakultät, Universität Potsdam, Nr. 80,
No. 80,
2005
Abstract
This paper analyses the structural change in Russia during the transition from the planned to a market economy. With regard to the famous three sector hypothesis, broad economic sectors were formed as required by this theory. The computation of their shares at GNP at market prices using Input-Output tables, and the adjustment of results from distortions, generated as side effects of tax avoidance practices, shows results that clearly reject claims that Russia would be on the road to a post-industrial service economy. Instead, at least until 2001, a tendency of “primarisation“ could be observed, that presents Russia closer to less-developed countries.
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Structural Change and Economic Dynamics in Transition Economies
Albrecht Kauffmann
Structural Change and Exchange Rate Dynamics: The Economics of EU Eastern Enlargement,
2005
Abstract
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EU Eastern Enlargement and Structural Change: Specialization Patterns in Accession Countries and Economic Dynamics in the Single Market
Albrecht Kauffmann, P. J. J. Welfens, A. Jungmittag, C. Schumann
Diskussionsbeiträge des Europäischen Instituts für Internationale Wirtschaftsbeziehungen (EIIW), Bergische Universität Wuppertal, Nr. 106,
No. 106,
2003
Abstract
This paper analyses key issues of structural change and specialization patterns in the economies of an enlarged European Union. In all transition countries we observe a shift from the agricultural and industrial sector towards the service sector in terms of employment and productivity; however, in some countries a reindustrialisation drives is observed in a late transition stage. While some countries namely the Czech Republic, Hungary, Slovakia, Poland, Estonia and Slovenia, have improved their productivity especially in medium-technology-intensive industries and may advance on the technological ladder, others remain unchanged and seem to get locked in labour-intensive industrial sectors. In the context of EU-enlargement, we expect trade creation – going along with a rise of intra-industry trade – and higher FDI-activities. Countries will have to adjust along the logic of comparative advantage, however, technological upgrading and human capital formation are fields in which government can stimulate the direction of comparative advantage. According to the Gerschenkron-hypothesis the accession countries have an “advantage of backwardness. Since accession countries have a low R&D-GDP ratio in the early transition stage rising government expenditures on research and development plus higher education is crucial. We expect the EU-15 countries in general to benefit from enlargement but gains will be asymmetric across countries: economic geography matters. Austria, Germany, the Scandinavian countries, the Netherlands, Italy and France are likely to profit more than the other members of EU-15. Germany and Austria additionally play a particularly crucial role as origins of FDI. Future research should focus on the speed and the scope of structural adjustment.
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Direct investments in Central and Eastern European acceding countries: Repercussions for the German labor market?
Constanze Dey
Wirtschaft im Wandel,
No. 4,
2003
Abstract
In the light of the high unemployment in the Germany we ask whether German FDI to the CEEC is motivated mainly by cost differentials and takes the form of vertical investment which leads to an increased pressure on blue collar jobs in Germany. The analysis shows that German direct investment abroad is motivated both by reasons of market access and by cost differentials. About 60 % of all German FDI is directed toward the service sector. Here, no negative impact on the German labour market is to be expected. About 40 % of total German FDI may partly be motivated by cost advantages and lead to outsourcing. In the three most important CEEC recipient countries (Poland, Czech Republic and Hungary) about half of all FDI is directed toward the manufacturing industries (chemical industry and automobile industry in particular). This supports the hypothesis that vertical investment to these CEECs has been directed towards sectors that display cost advantages (i.e. low labour costs) which results in a decrease of the number of blue collar jobs and their respectives wages.
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Environmental policy under product differentiation and asymmetric costs - Does leapfrogging occur and is it worth it?
Jacqueline Rothfels
IWH Discussion Papers,
No. 124,
2000
Abstract
This paper studies the influence of environmental policies on environmental quality, domestic firms, and welfare. Point of departure is Porter’s hypothesis that unilateral environmental regulation may enhance the competitiveness of domestic firms. This hypothesis has recently received considerable support in theoretical analyses, especially if imperfectly competitive markets with strategic behavior on behalf of the agents are taken into account. Our work contributes to this literature by explicitely investigating the implications of asymmetric cost structures between a domestic and a foreign firm sector. We use a partial-equilibrium model of vertical product differentiation, where the consumption of a product causes environmental harm. Allowing for differentiated products, the domestic industry can either assume the market leader position or lag behind in terms of the environmental quality of the produced product. Assuming as a benchmark case that the domestic industry lags behind, we investigate the possibility of the government to induce leapfrogging of the domestic firm, i.e. a higher quality produced by the domestic firm after regulation than that of the competitor prior to regulation. It is shown that in the case of a cost advantage for the domestic firm in the production process the imposition of a binding minimum quality standard can serve as a tool to induce leapfrogging. In case of a cost disadvantage the same result can be achieved through an adequate subsidization of quality dependend production costs. Thus, careful regulation enables the domestic firm in both scenarios to better its competitive position against foreign competitors and to earn larger profits. Additionally, environmental quality and welfare can be enhanced.
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