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The Role of Services in Production and International Trade: A Theoretical Framework

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Abstract

attempt to uncover an all-encompassing definition of tertiary activities, in the present paper we deliberately avoid this issue, as~ing instead what services do. We share in common with other observers the conviction that it is important to liberalize regulations covering services and international trade, but depart from the dominant focus on estabiishlng the determinants of comparative advantage in services. Instead of trying to ascertain which countries will end up exporting or providing services, we concentrate on the manner in which developments in the service sector have encouraged and promoted the general level of international trade in goods. In asking what services do, we acknowledge the importance of retail activities in facilitating the absorption of the nation's output by its consumers. Other activities, such as those provided by the medical and legal prOfessions, link in a more direct fashion producers and consumers of services. In the present paper we shift attention from these consumption activities to the way in which services are involved in the production process. Two key concepts are introduced: production blocks and service links. The paper discusses how, with growth of a' firm's output level, increasing returns and the advantages of specialization of factors within the fIrm encourage a sWitch to a production process with fragmented produc- tion blocks connected by service links. These links, bundles of activities consisting of coordination, adptinistration, transportation, and financial services, are.. increasingly demanded when the fragmentation of the production 'process allows joint use of production blocks located in
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... D'où le rôle fondamental de la chaîne de valeur dans l'identification des sources des avantages concurrentiels. Source : A partir de Porter (1985) Porter est certainement celui qui a contribué le plus à faire que la notion de « chaîne de (Jones et Kierzkowski, 1988 ;Deardorff, 1998 ;Venables, 1999), de « Intra-product Specialization » (Arndt, 1997), de « Outsourcing » (Feenstra, 1998), de « Production Sharing » (Yeats, 1998 ;Milberg, 2004), de « Vertical Specialization » (Hummels et al., 1998), de « International Production Networks » (Borrus et al., 2000), de « Offshoring » (Grossman et Rossi-Hansberg, 2006), voire de « Supply Chains 4 » (Costinot et al., 2013 ;Park et al., 2013). Ces différentes désignations font référence au même objet d'étude. ...
... Si les activités concernées par ces mouvements durant les années 1990 étaient limitées aux tâches les plus simples et les plus intensives en capital humain, aujourd'hui ces mouvements s'étendent et couvrent presque toutes les activités de la chaîne (Nicita et al., 2013). Ainsi, une littérature s'est développée autour des mouvements de délocalisation et d'externalisation pour étudier les causes de leur expansion (Jones et Kierzkowski, 1988 ;Krugman, 1995 ;Deardorff, 1998 ;Feenstra, 1998 ;Hummels et al., 1998 ;Yeats, 1998 ;Chevassus-Lozza, 1999 ;Hillberry, 2011 ;Baldwin, 2012) et leurs effets sur le commerce, les emplois et les salaires (Krugman, 1995 ;Leamer, 1996 ;Palpacuer, 2000 ;Palpacuer et Parisotto, 2003 ;Jones et Kierzkowski, 2004). ...
... L'objectif de ces recherches est de savoir si le déploiement des CGV est compatible avec un univers de concurrence parfaite (Deardorff, 1998(Deardorff, , 2005Venables, 1999 ;Markusen et Venables, 2007 ;Globerman, 2011). La seconde branche cherche à intégrer les CGV à des modèles de concurrence imparfaite, soit en suivant les pistes de la « nouvelle » théorie du commerce international (rendements d'échelle croissants, géographie économique) (Krugman, 1980 ;Jones et Kierzkowski, 1988 ;Arndt et Kierzkowski, 2001 ;Yomogida, 2007 ;Arndt, 2015), soit en explorant celles de la « nouvelle nouvelle » théorie du commerce international (hétérogénéité des firmes) (Melitz, 2003 ;Grossman et Rossi-Hansberg, 2006 ;Costinot et al., 2013). ...
Thesis
Les chaînes globales de valeur (CGV) s’avèrent être un des traits majeurs du commerce et des investissements internationaux. L’expansion de ces chaînes durant les trois dernières décennies a réanimé plusieurs débats, et notamment ceux relatifs au choix de spécialisation par les pays et au rôle de la politique industrielle dans le processus de développement. Ce dernier constitue le postulat de départ de la présente thèse qui cherche, à travers une revue de littérature policy oriented, à catégoriser les instruments politiques renforçant la participation des pays en développement aux CGV en les regroupant sous une seule politique désignée par « politique industrielle orientée vers les CGV ». Cette dernière englobe des instruments relatifs à la politique commerciale, fiscale, d’éducation, d’innovation et à l’environnement des affaires.La littérature consacrée aux politiques de la participation aux CGV privilégie nettement la voie de la participation industrielle, celle de la participation par le secteur manufacturier. Elle tend même à y voir la seule option possible pour les pays en développement. Notre étude livre sur ce point un résultat différent : il n’y a pas une mais deux voies (positionnements) au moins qui s’ouvrent aux pays qui font le choix de la participation aux CGV. L’option du « positionnement industriel » en est une. Celle du « positionnement commercial » en est une autre et elle n’est pas a priori une option de second rang ou une option par défaut. Elle constitue même l’option préférentielle pour les pays ayant des capacités industrielles limitées.Cette thèse entreprend de tirer des enseignements généraux de deux études empiriques. La première visant à tester l’impact des instruments politiques identifiés par la revue de littérature sur la participation des pays à revenu intermédiaire de la tranche supérieure aux CGV. La deuxième cherchant à identifier les facteurs affectant le choix de positionnement au sein des CGV. Ces études nous ont permis de confirmer le rôle clé de certains instruments politiques dans l’amélioration de la participation de ces pays aux CGV. Une étude du cas du Liban est menée afin d’approfondir notre analyse du positionnement commercial en projetant les facteurs identifiés dans les études empiriques sur le cas de ce pays. Nous soulignons les limites et les avantages que la politique libanaise procure au Liban afin d’envisager les orientations possibles de cette politique pour assurer une meilleure intégration du pays aux CGV.
... In Jones and Kierzkowski (1990)'s language, lower coordination cost leads to more frequent use of "service links" between "production blocks". (See Fig. 3 for visualization.) ...
... Their subsequent empirical study in Jones, Kierzkowski and Lurong (2005) confirms the theory's predictions that trade in parts and components expands as services become less costly. Jones and Kierzkowski (1990) are some of the first ones to formally map out the pattern of fragmentation. Baldwin and Venables (2013) investigate the relation between the engineering of the production process and offshoring. ...
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This paper is motivated by two observations in the large civil aircraft (LCA) industry. (1) Boeing and Airbus are significantly different in the degree of offshoring. (2) The degree of offshoring also changes among different aircraft models. To offer an explanation, this paper focuses on issues related to fragmentation. Existing literature has established the tie between fragmented technology and offshoring. However, it is assumed that production can be fragmented readily and at no cost; and only exogenous global economic factors have impact on the degree of fragmentation. This model distinguishes itself from others by incorporating endogeneity in fragmentation. A final-good firm can spend on R&D specifically for its own fragmented technology. As a result, the final-good firm can optimally choose the portion of components to be offshored. A strategic trade policy model is used to show that the degree of offshoring depends on the firm's own cost of production, the host country's cost of production, the global state of technology as well as the government trade policies. In particular, export subsidy and subsidy on R&D of fragmented technology are shown to be policy substitutes.
... This paper focuses on the division of labour according to business functions -or value-chain functions 1 -which represent one of the new dimensions of specialisation that have accompanied the fragmentation of production processes across different locations Kierzkowski, 1990, 2001). Such a fragmented mode of production implies that different 'blocks' of production (Jones and Kierzkowski, 1990) are linked with each other by services, such as transport, information and other business services. While this increasing specialisation in individual segments of the production processes can be seen as a direct application of Adam Smith's famous example of the pin factory, there is also a new element involved. ...
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