The development of European business services value chains

Abstract This article looks at the determinants of a country’s participation in business services (BS) global value chains (GVCs). BS GVCs are comparatively less explored than traditional manufacturing ones, and there is a gap in the literature on the relative positions of countries in BS GVCs and the opportunities they might open for development. This article puts forward and finds empirical support to the conjecture that the domestic structure of backward and forward linkages à la Hirschman, alongside the domestic representative demand for BS à la Linder, are of high importance. The results, based on the World Input-Output Database, suggest that the presence of strong domestic backward-linked industries to BS makes an emerging country more likely to create domestic value within BS GVC. Our findings contribute to the debate on a “premature de-industrialization” in emerging countries and on the relationship between levels of development and engagement in BS GVCs.

Download Full-text

When Linder Meets Hirschman: Inter-Industry Linkages and Global Value Chains in Business Services.

SSRN Electronic Journal ◽

10.2139/ssrn.2744553 ◽

2015 ◽

Cited By ~ 5

Author(s):

Javier Lopez Gonzalez ◽

Valentina Meliciani ◽

Maria Savona

Keyword(s):

Global Value Chains ◽

Value Chains ◽

Business Services

Download Full-text

Competition in the Business Services Sector: Implications for the Competitiveness of the European Economy

Competition & Change ◽

10.1080/1024529032000146704 ◽

2003 ◽

Vol 7 (2-3) ◽

pp. 127-146 ◽

Cited By ~ 4

Author(s):

Joanne Roberts

Keyword(s):

Global Economy ◽

Market Segment ◽

Business Services ◽

Competitive Position ◽

Services Sector ◽

Number Of Factors ◽

European Business ◽

Quality Provision

This paper investigates the nature and extent of competition in the European business services sector. Levels of competition in the sector vary considerably by market segment and location. A number of factors, including the fragmented nature of the market, firm based strategies and regulatory conditions, restrict competition in the sector. The analysis of competition in the business services sector highlights the failure of the market to promote consistently an efficient and quality provision of business services. Given the important role of business services in the economy as a whole and their impact on the competitiveness of client firms, it is argued here that policymakers would be wise to influence competition within the business services sector through a variety of initiatives, with the aim of improving the efficiency and quality of business services provision. Such initiatives would result in positive spill-over effects for Europe's general competitive position in the global economy.

Download Full-text

India-ASEAN Trade in Intermediates and Final Products: A Study of Selected Sectors

Global Economy Journal ◽

10.1515/gej-2016-0057 ◽

2016 ◽

Vol 16 (4) ◽

pp. 721-743 ◽

Cited By ~ 1

Author(s):

Deeparghya Mukherjee

Keyword(s):

Free Trade Agreements ◽

Value Added ◽

Trade Agreements ◽

Value Chains ◽

Viet Nam ◽

Transport Equipment ◽

Trade Expansion ◽

Business Services ◽

Asean Countries ◽

Trade In Value Added

The architecture of international trade is increasingly changing towards trade in value added from trade in final products. In this light, studying the differential trends of exports and imports of intermediates and final products between trading nations becomes important. This paper attempts to study the pattern of trade between India and the Association of South East Asian Nations (ASEAN) (a vibrant region trading through value chains), and investigates the effects of India’s functional Free Trade agreements (FTAs) in the region with ASEAN, Singapore and Malaysia- segmented by intermediates and final products. Our analysis is further focused on five sectors which are significant in India’s trade basket and stand out in terms of organising production into value chains spanning across countries, primarily from the ASEAN region. These are: fishing, textiles and wearing apparel, transport equipment, recycling and financial intermediation & business services. We find and present evidence to show increased trade of intermediates between India and ASEAN countries like Singapore, Malaysia, Philippines and Viet Nam. The trade expansion effects have been far stronger for intermediates trade implying India’s greater participation in the regional value chains. However, India’s exports for final demand are yet to see significant increases.

Download Full-text