Please use this identifier to cite or link to this item: http://hdl.handle.net/2440/116903
Type: Working paper
Title: Servicification in global value chains: the case of Asian countries
Author: Thangavelu, S.
Wang, W.
Oum, S.
Publisher: ERIA
Issue Date: 2017
Series/Report no.: ERIA Discussion Paper Series
Statement of
Responsibility: 
Shandre Mugan Thangavelu, Wang Wenxiao, Sothea Oum
Abstract: The paper studies the degree of servicification (or the role of services as inputs in manufacturing) of selected 61 Asian countries in terms of global value chain (GVC) activities at the sectoral level using domestic and foreign services from 1995 to 2011. We explore empirically the possible sources of servicification of the economies in terms of the factors driving the expansion of servicification. We categorize servicification activities into two types: (a) domestic servicification using domestic services and (b) foreign servicification using foreign value-added content in domestic exports. Servicification is confirmed in selected Asian countries, particularly in 16 East Asian countries associated with the Regional Comprehensive Economic Partnership (RCEP) negotiation. However, the selected Asian countries tend to have lower domestic servicification levels, but higher foreign servicification levels as compared to the overall sample of countries in the study. Countries with higher participation rates and lower positions in GVCs tend to have higher levels of foreign servicification across the sectors. In contrast, countries with higher participation rates and higher positions in GVCs tend to use more domestic services in manufacturing exports. The effect is larger for Asian countries as compared to the developed countries in the sample. The study also highlights the role of technical improvement and institutional as key factors in the development of services in the global production value chain.
Keywords: Global value chains; servicification; institutions; RCEP countries
Description: ERIA-DP-2017-12
Rights: Copyright status unknown
RMID: 0030105624
Published version: http://www.eria.org/research/servicification-in-global-value-chains-the-case-of-asian-countries/
Appears in Collections:Institute for International Trade publications

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