Determining the interplay between the services and manufacturing sectors in the Philippines and the role of services in expanding global value chain participation
Date
2018-05-31
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Abstract
This paper analyzes the interconnection between the manufacturing and services sectors which are the top performing sectors in the country. It looks at the shares of services embedded in manufacturing and computes for total and services backward linkages in the manufacturing industry. It turns out that services value-added in manufacturing has held an average growth rate of 48.87 percent throughout 2000 to 2011 increasingly growing at a considerable rate, paving a
phenomenon described as the “servicification of manufacturing”. The paper also looks at services’ important role in cross-border value chains and into data that show which services sub-sector accounts for the most value-added in exports, specifically manufacturing exports. Findings show that the greatest share is held by the wholesale, retail, hotels, restaurants and transportation services.
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Keywords
Manufacturing sector, services, Global vale chain