Work

Revisiting the role of service for manufacturing firm exports: Evidence from Japanese firm-level data

Year: 2025

Type: article

Abstract: This study revisits the impact of the servicification of Japanese manufacturing firms on their performance in the export market using a Japanese firm-level panel data set from 2009 to 2019. We constructed two measures of firm-level servicification: in-house service production and bought-in service input, which refers to service purchased from external providers. We then examine the impact of both types of servicification on corporate performance in the export market, as measured by the global value chain participation dummy and export intensity. Estimating the correlated random effects model, which allows us to control for unobserved individual fixed effects, we find that bought-in service input, especially service outsourcing, significantly improves global value chain participation and export intensity, and that this effect is greater for high-tech industries.

Source: Japan and the World Economy

DOI: 10.1016/j.japwor.2025.101343

Author: Toshiyuki Matsuura

Institution: Keio University

Language: English

Topic: Global trade and economics

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: hybrid

Estimated APC paid: $3,070