Structural Change: Do Services Substitute or Complete the Industry?

Ümit Gaberli

Article Details

Structural Change: Do Services Substitute or Complete the Industry?

Authors:

Ümit Gaberli

Publisher:

Bursa Uludağ University

Main Topics:

Panel Veri Analizi | Büyüme | Kalkınma Ekonomisi - Makro

Journal:

International Journal of Social Inquiry Vol.16 Issue 1, pp.29-46

Document Type:

Article

Publication Date:

6/2023

Document Language:

English

Document ID (Org No.):

2001292958

pISSN:

1307-8364

Keywords:

Abstract:

 This study analyzes the nature of the relationship between the services and the industry, i.e., substitution or complementarity, given the increasing share of services tertiarization process in the world economy. The economies in the world evolved towards a services-dominated structure over a half-century. This evolution resulted in a decreasing industry share despite continuously increased industrial production. We used a dataset covering the 1970-2018 period for 173 countries to investigate this question by employing the panel vector of auto-regression analysis Panel VAR. We also approached the problem by estimating a dynamic panel data model by the two-step system GMM for robustness. The study also calculates the linkages between the industry and the services. The empirical results show that services do not substitute industry. There is a complementary role of the services for the industry, but the complementary role of the industry for services is ambiguous.

 This study analyzes the nature of the relationship between the services and the industry, i.e., substitution or complementarity, given the increasing share of services tertiarization process in the world economy. The economies in the world evolved towards a services-dominated structure over a half-century. This evolution resulted in a decreasing industry share despite continuously increased industrial production. We used a dataset covering the 1970-2018 period for 173 countries to investigate this question by employing the panel vector of auto-regression analysis Panel VAR. We also approached the problem by estimating a dynamic panel data model by the two-step system GMM for robustness. The study also calculates the linkages between the industry and the services. The empirical results show that services do not substitute industry. There is a complementary role of the services for the industry, but the complementary role of the industry for services is ambiguous.

 This study analyzes the nature of the relationship between the services and the industry, i.e., substitution or complementarity, given the increasing share of services tertiarization process in the world economy. The economies in the world evolved towards a services-dominated structure over a half-century. This evolution resulted in a decreasing industry share despite continuously increased industrial production. We used a dataset covering the 1970-2018 period for 173 countries to investigate this question by employing the panel vector of auto-regression analysis Panel VAR. We also approached the problem by estimating a dynamic panel data model by the two-step system GMM for robustness. The study also calculates the linkages between the industry and the services. The empirical results show that services do not substitute industry. There is a complementary role of the services for the industry, but the complementary role of the industry for services is ambiguous.

 This study analyzes the nature of the relationship between the services and the industry, i.e., substitution or complementarity, given the increasing share of services tertiarization process in the world economy. The economies in the world evolved towards a services-dominated structure over a half-century. This evolution resulted in a decreasing industry share despite continuously increased industrial production. We used a dataset covering the 1970-2018 period for 173 countries to investigate this question by employing the panel vector of auto-regression analysis Panel VAR. We also approached the problem by estimating a dynamic panel data model by the two-step system GMM for robustness. The study also calculates the linkages between the industry and the services. The empirical results show that services do not substitute industry. There is a complementary role of the services for the industry, but the complementary role of the industry for services is ambiguous.

Article Details

Structural Change: Do Services Substitute or Complete the Industry?

Authors:

Ümit Gaberli

Publisher:

Bursa Uludağ University

Main Topics:

Panel Veri Analizi | Büyüme | Kalkınma Ekonomisi - Makro

Journal:

International Journal of Social Inquiry Vol.16 Issue 1, pp.29-46

Document Type:

Article

Publication Date:

6/2023

Document Language:

English

Document ID (Org No.):

2001292958

pISSN:

1307-8364

Structural change

tertiarization

services

industry

de-industrialization

Issues

Article Details

Structural Change: Do Services Substitute or Complete the Industry?

Authors: Ümit Gaberli

Publisher: Bursa Uludağ University

Main Topics: Panel Veri Analizi | Büyüme | Kalkınma Ekonomisi - Makro

Journal: International Journal of Social Inquiry Vol.16 Issue 1, pp.29-46

Document Type: Article

Publication Date: 6/2023

Document Language: English

Document ID (Org No.): 2001292958

pISSN: 1307-8364

Structural change

tertiarization

services

industry

de-industrialization

Issues

Authors:

Ümit Gaberli

Publisher:

Bursa Uludağ University

Main Topics:

Panel Veri Analizi | Büyüme | Kalkınma Ekonomisi - Makro

Journal:

International Journal of Social Inquiry Vol.16 Issue 1, pp.29-46

Document Type:

Article

Publication Date:

6/2023

Document Language:

English

Document ID (Org No.):

2001292958

pISSN:

1307-8364