Services Development and Comparative Advantage in Manufacturing

Read this working paper in the Policy Research Working Papers series put out by the World Bank. The authors argue that services have to compete for resources alongside manufacturing, with implications for export industries.

Figures and Tables

Appendix 1A

Appendix 1A: Total direct & indirect value added export (VAX) of financial service, 1995-2007

Country	X (gross export)	VAX	Ratio1 = VAX/X	dVAX	indVAX	Ratio2 = indVAX/dVAX
AUS	210	579	2.76	133	447	3.74
AUT	564	686	1.22	334	352	1.00
BEL	620	896	1.45	327	569	1.65
BGR	20	47	2.37	13	34	2.69
BRA	72	457	6.30	47	410	8.68
CAN	487	984	2.02	275	709	2.59
CHN	53	1774	33.62	34	1740	42.94
CYP	4	12	2.72	3	8	2.79
CZE	45	104	2.32	20	84	4.77
DEU	1151	2644	2.30	529	2115	3.56
DNK	122	282	2.30	76	206	2.83
ESP	438	847	1.93	284	563	1.82
EST	8	15	1.91	5	10	1.87
FIN	33	122	3.76	21	101	3.56
FRA	790	1925	2.44	405	1520	3.96
GBR	5050	4339	0.86	2591	1748	0.54
GRC	39	87	2.27	28	59	2.21
HUN	52	118	2.28	29	89	3.74
IDN	139	271	1.95	103	168	1.95
IND	101	683	6.77	78	605	7.46
IRL	1597	1171	0.73	831	341	0.38
ITA	552	1604	2.90	331	1273	3.57
JPN	789	3603	4.57	522	3081	6.25
KOR	199	976	4.91	119	857	6.58
LTU	2	12	6.45	1	11	9.35
LUX	2910	849	0.29	640	209	0.32
LVA	8	16	1.96	5	10	2.09
MEX	181	512	2.83	119	393	3.70
MLT	7	11	1.49	4	7	1.97
NLD	820	1244	1.52	442	803	1.58
POL	114	219	1.92	70	148	2.55
PRT	93	235	2.52	65	170	2.76
ROM	24	67	2.82	17	50	3.07
RUS	5	152	29.25	4	149	49.65
SVK	20	37	1.89	12	25	2.01
SVN	9	38	4.35	6	33	4.66
SWE	372	532	1.43	247	285	1.08
TUR	7	251	34.48	5	247	45.46
TWN	95	1197	12.55	75	1122	13.78
USA	10116	11897	1.18	5624	6273	1.07
ROW	2382	4798	2.01	1598	3199	1.93
TOT	30300	46293	1.53	16070	30223	1.88

Notes: The export values in this table are for financial services sector (WIOD sector 28) in 100 million U.S. dollars at 2005 constant price, using the U.S. GDP deflator from the Federal Reserve Economic Data (website address: http://research.stlouisfed.org/fred2). X is total gross exports. VAX is total value added exports. dVAX is direct value added exports. indVAX is indirect value added exports through other sectors.