Skip to main content
SpringerLink
Log in

New perspectives on intersectoral relationships between manufacturing and services

  • Published:
Economics of Planning Aims and scope Submit manuscript

Abstract

This study advocates the explicit incorporation of the production of in-house information services into input-output tables in order to overcome the limitations imposed by conventional accounting frameworks which distort the relationship between manufacturing and services. This relationship is analysed using a well-known impact methodology. The importance of consumption induced multiplier effects, i.e. demand linkages, is also emphasised. The shift in perception of intersectoral relationships which adoption of our methodology provides is demonstrated using Japan in 1980 as a case study. It is shown that ‘conventional’ analysis seriously underestimates the importance of services for output and employment creation. Comparisons to a recent study by Park and Chan (1989) are drawn which provided the stimulus for this paper.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • DiamondJ. (1974), ‘The analysis of structural constraints in developing economies: A case study’, Oxford Bulletin of Economics and Statistics, 36, 95–108.

    Google Scholar 

  • Eliasson, G. (1988), The Knowledge Base of an Industrial Economy, Stockholm, Research Report No. 33, The Industrial Institute for Economic and Social Research.

  • EngelbrechtH.-J. (1986a), ‘From newly industrialising to newly informatising country: The primary information sector of the Republic of Korea 1975–1980’, Information Economics and Policy, 2(3), 169–194.

    Google Scholar 

  • EngelbrechtH.-J. (1986b), “The Japanese information economy: Its quantification and analysis in a macroeconomic framework (with comparisons to the U.S.)’, Information Economics and Policy, 2(4), 277–306.

    Google Scholar 

  • EngelbrechtH.-J. (1990), ‘A comparative analysis of the use of information inputs in the manufacturing sectors of Korea and Japan’, World Development, 18, 77–89.

    Google Scholar 

  • FriedmanD. (1988), The Misunderstood Miracle: Industrial Development and Political Change in Japan, New York, Cornell University Press.

    Google Scholar 

  • GershunyJ. (1987), ‘The future of service employment’, in O.Giarini (ed.), The Emerging Service Economy, Oxford, Pergamon Press, pp. 105–124.

    Google Scholar 

  • HewingsG. (1982a), ‘The empirical identification of key sectors in an economy: A regional perspetive’, The Developing Economies, 20, 173–195.

    Google Scholar 

  • HewingsG. (1982b), ‘Trade, structure and linkages in developing and regional economies’, Journal of Development Studies, 11, 91–96.

    Google Scholar 

  • HewingsG. and JensenR. (1986), ‘Regional, interregional and multiregional input-output analysis’, in P.Nijkamp (ed.), Handbook of Regional and Urban Economics, Volume 1, Amsterdam, Elsevier Science Publishers BV, 295–355.

    Google Scholar 

  • JensenR. and WestG. (1983), ‘The nature of Australian regional input-output multipliers’, Prometheus, 1(1), 202–221.

    Google Scholar 

  • KarunaratneN. (1986), ‘An input-output approach to the measurement of the information economy’, Economics of Planning, 20(2), 87–103.

    Google Scholar 

  • MathewsJ. (1989), ‘New production concepts’, Prometheus, 7(1), 129–148.

    Google Scholar 

  • ParkS.-H. and ChanK. (1989), ‘A cross-country input-output analysis of intersectoral relationships between manufacturing and services and their employment implications’, World Development, 17(2), 199–212.

    Google Scholar 

  • PoratM. and RubinM. (1977), The Information Economy, in nine volumes, Washington DC: Government Printing Office.

    Google Scholar 

  • RiddleD. (1987), ‘The role of the service sector in economic development: Similiarities and differences by development category’, in O.Giarini (ed.), The Emerging Service Economy, Oxford, Pergamon Press, pp. 83–104.

    Google Scholar 

  • WestG. and JensenR. (1980), ‘Some reflections on input-output multipliers’, The Annals of Regional Science, 14, 77–89.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Economics, Massey University, Palmerston North, New Zealand

    Hans-Jürgen Engelbrecht

Authors
  1. Hans-Jürgen Engelbrecht
    View author publications

    You can also search for this author in PubMed Google Scholar

Additional information

An earlier version of the study appeared as Massey Economic Paper No. A9101, January 1991. Comments from two anonymous referees are gratefully acknowledged.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Engelbrecht, HJ. New perspectives on intersectoral relationships between manufacturing and services. Econ Plann 25, 165–178 (1992). https://doi.org/10.1007/BF00373065

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1007/BF00373065

Keywords

Search

Navigation