Servicification: Its Meaning and Policy Implications
Kim, June Dong | January 2019
Abstract
Services account for about 80 percent of employment and 75 percent of GDP in OECD countries. In Korea, the ratio of the service industry in total employment is 70.2 percent, and its ratio in total GDP is 59.2 percent as of 2016. In major emerging economies, the ratios are between 40 and 70 percent on both accounts. Furthermore, these ratios are steadily increasing over time.
In relation to this phenomenon, servicification means that services are becoming more important in manufacturing activities. In other words, the servicification of manufacturing can be defined as the fact that manufacturing increasingly buys, produces and sells services. More and more services are embedded in manufacturing goods. Likewise, manufacturing firms produce increasingly more services nowadays. For example, the share of services in total sales of the tech company IBM is about 60 percent, exceeding that of manufacturing.
Citation
Kim, June Dong. 2019. Servicification: Its Meaning and Policy Implications. © Korea Institute for International Economic Policy. http://hdl.handle.net/11540/9515.Keywords
Development
Trade
Development Goals
Skills Development
Sustainable Development
Trade Flows
Trade And Development
Food Security And Trade
Trade Volume
Trade Potential
Trade Flows
External Trade
Industrial policy
New technology
Innovations
Industry
Export policy
Import policy
Trade Unions
Natural Resources
Services Trade
Development assistance
ADB
Curriculum development
Development assistance
Development aid
Development indicators
Development potential
Development models
Project appraisal
Performance appraisal
Regional development bank
Trade development
Import volume
Export volume
Service industry
Capital
Business
Communication in rural development
Social participation
Occupational training
Partnership
Joint venture
System analysis
Labor and globalization
Labor policy
Regional trading blocs
Foreign trade and employment
Developing countries
Industrial priorities
Technological innovation
Technology transfer
Foreign trade regulation
Industrial relations
Trade-unions
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