Tag Archives | services
Economics, Information and Communications Technology

Productive services with the help of internet technologies

Productive services with the help of internet technologies
One long-standing concern in the economic field has been that services contribute little to economic development. Services would suffer from a so-called Baumol’s cost disease (Baumol 1967), meaning factors such as labor cannot be easily substituted for more productive factors using existing technologies, as it happens in manufacturing. Over time, this would lead services to become a drag on the economy relative to other more productive industries.

Economics, Trade

Productivity spillovers from services firms in low- and middle-income countries: What is the role of firm characteristics and services liberalization?

Productivity spillovers from services firms in low- and middle-income countries: What is the role of firm characteristics and services liberalization?
It has been widely acknowledged that services play an important role for other industries, in particular manufacturing. A study by the Organisation for Economic Co-operation and Development (OECD) finds that services represent at least 30% of the value added in manufacturing exports (OECD 2014). Another study by the World Bank suggests that countries with a higher services content in their downstream economies are also those producing more complex goods (Saez et al. 2015).