NDLI: The Role of Services for Competitiveness in Manufacturing

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Quantitative Evidence on Transparency in Regional Trade Agreements

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Policy Complements to the Strengthening of IPRS in Developing Countries

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Export Restrictions on Strategic Raw Materials and Their Impact on Trade

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South Africa's Trade and Growth

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Market Structure in the Distribution Sector and Merchandise Trade

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Analysis of Subsidies for Services. The Case of Export Subsidies.

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International Production Networks in the Nordic/Baltic Region

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Services Trade Liberalisation and Tourism Development

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Facilitating Trade and Structural Adjustment Chile. Experiences in Non-Member Economies.

Do Bilateral and Regional Approaches for Reducing Technical Barriers to Trade Converge Towards the Multilateral Trading System?

The Interaction between Investment and Services Chapters in Selected Regional trade Agreements

The Impact of Pro-Competitive Reforms on Trade in Developing Countries

Expanding International Supply Chains. The Role of Emerging Economies in Providing it and Business Process Services.

Export Processing Zones. Past and Future Role in Trade and Development.

Modal Estimates of Services Barriers

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Regulatory Reform and Market Openness. Processes to Assess Effectively the Trade and Investment Impact of Regulation.

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Business Services, Trade and Costs

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Dynamic Gains from Trade

South-South Services Trade

South-South Trade In Goods

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Special and Differential Treatment in the Area of Trade Facilitation

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Inter-modal Linkages in Services Trade

Special and Differential Treatment Under the GATS

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Intertwined. FDI in Manufacturing and Trade in Services.

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The Role of Automation in Trade Facilitation

Trade Interests of the Tsunami Affected Countries

The Economic Impact of Trade Facilitation

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Trade Policy. Promoting Investment for Development.

Analysis of Non-Tariff Barriers of Concern to Developing Countries

Trade Preference Erosion. Potential Economic Impacts.

Impact of Changes in Tariffs on Developing Countries' Government Revenue

Regional Trading Arrangements and the Multilateral Trading System. Agriculture.

Analysis of Non-Tariff Measures. Customs Fees and Charges on Imports.

Regulatory Reform in the Russian Federation. Enhancing Trade Openness through Regulatory Reform.

Trade Facilitation Reforms in the Service of Development. Country Case Studies.

Managing Request-Offer Negotiations under the GATS. The Case of Environmental Services.

International Licensing and the Strengthening of Intellectual Property Rights in Developing Countries

Regulatory Reform and Market Openness. Understanding the Links to Enhance Economic Performance.

The Cost of Introducing and Implementing Trade Facilitation Measures. Interim Report.

Services Barriers and their Economic Impact. Examples of Banking and Telecommunications Services in Selected Transition Economies.

Analysis of Non-Tariff Measures. The Case of Prohibitions and Quotas.

Addressing Market-Access Concerns of Developing Countries arising from Environmental and Health Requirements. Lessons from National Experiences.

Structural Adjustment in Textiles and Clothing in the Post-ATC Trading Environment

Managing Request-Offer Negotiations Under the GATS. The Case of Legal Services.

Services Trade Liberalisation. Identifying Opportunities and Gains.

The Role of Services for Competitiveness in Manufacturing

Content Provider	OECD iLibrary
Author	Nordås, Hildegunn Kyvik Kim, Yunhee
Abstract	This study analyses the relationships between competitiveness in manufacturing and the quality of key supporting services. Three indicators of competitiveness are considered: the degree of product differentiation, unit prices obtained in export markets and the duration of trade. The density of telecoms networks and the reliability of electricity supply stand out as the most crucial for competitive manufacturing. In addition the ease at which contracts can be enforced and the time it takes to export and import goods are strongly related to competitiveness. Our methodology allows us to go beyond a one size fits all policy analysis. Interestingly, we find that in low-income countries, the impact of services quality and policy on competitiveness is highest in low-technology industries; in middle-income countries it is highest in medium-technology sectors and in high-income countries the impact is highest in medium-high and high-technology industries. This suggests that better services contribute to moving up the value chain in industries where a country already has technological capacity and comparative advantage, but better services alone may not stimulate product differentiation in sectors where a country is far from the competitive edge – at least not in the short run. Policy reforms needed are to simplify procedures for contract enforcement, liberalisation of FDI, strengthen pro-competitive regulation of network services, and eliminate tariffs. It is concluded that new ways of doing business where manufacturers build relationships with customers and compete on the basis of products they are willing to pay a premium for has the potential to become an important driving force for growth after the great recession, provided that adequate support from competitive services markets is in place.
Language	English
Publisher	OECD Publishing
Publisher Date	2013-04-05
Access Restriction	Open
Subject Keyword	Industry and Services Trade
Content Type	Text
Resource Type	Article

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