Productivity linkages between services and manufacturing: Firm-level evidence from developing countries

Ben Shepherd

MPRA Paper from University Library of Munich, Germany

Abstract: This paper uses firm-level data from 119 developing countries to show that services sector productivity is positively associated with manufacturing productivity. Moreover, the link between productivity in services and manufacturing is particularly strong for manufacturing firms that are more intensive in their use of services inputs. At the mean level of services input use in the dataset, a 10% improvement in services productivity is associated with a 0.6% improvement in manufacturing productivity.

Keywords: Services; Manufacturing; Productivity linkages; Firm-level data; Developing countries (search for similar items in EconPapers)
JEL-codes: L60 L80 O14 (search for similar items in EconPapers)
Date: 2012-10-05
New Economics Papers: this item is included in nep-eff
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