Matthieu Crozet and Emmanuel Milet
- Published in print:
- 2017
- Published Online:
- April 2017
- ISBN:
- 9780198779162
- eISBN:
- 9780191824333
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198779162.003.0005
- Subject:
- Economics and Finance, Macro- and Monetary Economics
In Chapter 4 Crozet and Milet revisit the de-industrialization process and push the argument that the frontier between manufacturing and services is quite blurry. Defined as large-scale production, ...
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In Chapter 4 Crozet and Milet revisit the de-industrialization process and push the argument that the frontier between manufacturing and services is quite blurry. Defined as large-scale production, increasing returns, new consumption items increasingly affordable to the consumer, many services could compare with industries. And even within manufacturing industry in the usual sense, services represent an increasing share of the value added. This shift towards services within the manufacturing sector is characterized as the `servitization' of the manufacturing sector. Using French business statistics, they describe this servitization of manufacturing firms. They document a moderate, but significant and steady trend of servitization over the period and find that the phenomenon is mainly driven by changes that occur within firms. By the end of their sample period, they document that 83% of manufacturing firms sold some services, 40% sold more services than goods, and 26% did not even produce goods.Less
In Chapter 4 Crozet and Milet revisit the de-industrialization process and push the argument that the frontier between manufacturing and services is quite blurry. Defined as large-scale production, increasing returns, new consumption items increasingly affordable to the consumer, many services could compare with industries. And even within manufacturing industry in the usual sense, services represent an increasing share of the value added. This shift towards services within the manufacturing sector is characterized as the `servitization' of the manufacturing sector. Using French business statistics, they describe this servitization of manufacturing firms. They document a moderate, but significant and steady trend of servitization over the period and find that the phenomenon is mainly driven by changes that occur within firms. By the end of their sample period, they document that 83% of manufacturing firms sold some services, 40% sold more services than goods, and 26% did not even produce goods.
