New Perspectives on Intersectoral Relationships between Manufacturing and Services

Hans-Jurgen Engelbrecht ()

Economic Change and Restructuring, 1992, vol. 25, issue 2, 165-78

Abstract: This study advocates the explicit incorporation of the production of in-house information services into input-output tables in order to overcome the limitations imposed by conventional accounting frameworks which distort the relationship between manufacturing and services. This relationship is analyzed using a well-known impact methodology. The importance of consumption induced multiplier effects, i.e. demand linkages, is also emphasized. The shift in perception of intersectoral relationships which adoption of the author's methodology provides is demonstrated using Japan in 1980 as a case study. It is shown that "conventional" analysis seriously underestimates the importance of services for output and employment creation. Comparisons to a recent study by S. Park and K. Chan (1989) are drawn which provided the stimulus for this paper. Copyright 1992 by Kluwer Academic Publishers

Date: 1992
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