Template-type: ReDIF-Paper 1.0  
Author-Name: Daniel Herrero
Author-Workplace-Name: Instituto Complutense de Estudios Internacionales (ICEI), Universidad Complutense de Madrid.
Title: Productive linkages in a segmented model: analyzing the role of services in the exporting performance of German manufacturing
Abstract: This article analyzes the causes of the exporting performance of the German manufacturing sector. By applying a subsystem approach to the input-output analysis, we 
	take into account the interlinkages that exist between manufacturing and services. Particularly, two types of relationships that influence manufacturing 
	competitiveness are considered: the wage squeeze in services due to institutional factors and outsourcing; and the role played by the knowledge-intensive business 
	services (KIBS) as innovation drivers. With vertically integrated sectors as observations, an export model is estimated. Overall, our results point to the minor 
	importance of labor costs for international competitiveness. We also capture a significant but small effect of service suppliers’labor cost on manufacturing exports. 
	We find that KIBS have helped manufacturing gain international competitiveness. The paper concludes that non-price factors are the main drivers of German exports and 
	that the relationship between manufacturing and services is not only a matter of cost reduction.
Keywords: Unit labor costs; Competitiveness; Germany; Manufacturing; Productive linkages; Input-output
Creation-Date: 2020
Length: 30 pages
Number: 2005
X-File-Ref: http://america.sim.ucm.es/repec/ucm/ref/wpaper20-05.txt
File-URL: https://eprints.ucm.es/id/eprint/63580/1/WP05-20.pdf
File-Format: Application/pdf
File-Function: Full text
Handle: RePEc:ucm:wpaper:2005