Reassessing the ‘Massachusetts Miracle’: Reindustrialization and Balanced Growth, or Convergence to ‘Manhattanization’?

1989 ◽  
Vol 21 (6) ◽  
pp. 771-801 ◽  
Author(s):  
B Harrison ◽  
J Kluver
Keyword(s):  
Wage Inequality ◽  
Employment Growth ◽  
Manufacturing Sector ◽  
Equilibrium Structure ◽  
High Tech ◽  
Business Services ◽  
Balanced Growth ◽  
State Economy ◽  
Military Procurement ◽  
Job Growth

Research suggests that conventional wisdom about the ‘miraculous’ reindustrialization of the regional economy of Massachusetts is much too simplistic. The decline in unemployment was as much the result of low average labor-force growth as it was of rapid job creation. Also Massachusetts has experienced increases in income and wage inequality, and there has been a dramatic slowdown in employment growth. The manufacturing sector is still deindustrializing and high-tech job growth has virtually ceased. Several complementary explanations are offered for these changes. First, a chronic labor shortage is constraining company expansion. Second the declining rate of growth of federal military procurement may particularly affect Massachusetts. Third, the state economy may have begun to converge on a new equilibrium structure. A shift–share analysis of employment changes during the periods 1973 – 79, 1979 – 84, and 1984 – 87 reveals that the state's competitive advantage has narrowed to a small number of business services and their associated real estate and construction activities.

BUSINESS SERVICE, INTERNATIONAL OUTSOURCING, AND WAGE INEQUALITY

2018 ◽  
Vol 63 (05) ◽  
pp. 1175-1182
Author(s):  
CHU-PING LO
Keyword(s):  
Wage Inequality ◽  
Service Sector ◽  
Developing Economies ◽  
Manufacturing Sector ◽  
Developed Countries ◽  
Business Service ◽  
International Outsourcing ◽  
Business Services ◽  
Production Externalities ◽  
The Impact

This paper adds business services to Feenstra and Hanson’s (1996) model to show that if a country is more prosperous in business services, tending to carry out less international outsourcing activities than it would otherwise. In this model, the more varieties of specialized business services a country endows, the more welfare gains arise in the presence of positive production externalities to the manufacturing sector. Since developed countries are more prosperous in business service sector, this model helps to explain why the impact of opening trade on the dispersion of both wages and unemployment is stronger in developing economies.

Dimensions of Labor Market Change in Canada: Intersectoral Shifts, Jobs, and Worker Turnover

1994 ◽  
Author(s):  
J. Baldwin ◽  
P. K. Gorecki
Keyword(s):  
Labor Market ◽  
Employment Growth ◽  
Manufacturing Sector ◽  
Manufacturing Industries ◽  
Market Change ◽  
Job Change ◽  
Worker Turnover ◽  
Long Run ◽  
Job Growth ◽  
Level Shifts

This paper examines different aspects of labor market change. Three separate measures of change are used to examine respectively the extent of employment shifts among industries; job change measures that capture the extent of employment growth and decline as a result of changes in producer employment levels; the size of worker separations. When change is measured as the employment lost from manufacturing industries that decline in size between 1970 and 1979, the degree of reallocation is found to be relatively small. In contrast, job growth and decline at the producer level shifts large amounts, even in the long run. Over the period 1970 to 1981, about 3.6 percent of manufacturing jobs were lost annually due to the decline of producers. The largest amount of change is found when worker separations are measured. Between 1978 and 1986, the number of permanent separations was, on average, equal to more than 20 percent of the number of people holding jobs in the manufacturing sector.

Urban shrinkage and resurgence in Germany

Urban Studies ◽  
2016 ◽  
Vol 54 (12) ◽  
pp. 2701-2718 ◽  
Author(s):  
Florian Bartholomae ◽  
Chang Woon Nam ◽  
Alina Schoenberg
Keyword(s):  
Manufacturing Sector ◽  
Transformation Process ◽  
High Tech ◽  
Business Services ◽  
Industrial Transformation ◽  
Innovation Activities ◽  
East German ◽  
Policy Measures ◽  
Post Industrial ◽  
German Cities

This article questions the strict parallelism of demographic and economic development in characterising urban shrinkage in Germany. As the cases of several Ruhr cities and East German cities prove, urban economic growth can be achieved thanks to the substantial presence of modern industries and business services, and despite declines in population size. Serious shrinkages of Halle, Cottbus and Schwerin are primarily due to failures in the post-industrial transformation process. Recent policy measures strongly oriented towards slowing the downsizing process of population (via e.g. urban regeneration strategies) do not appear to be sufficient for achieving urban resurgence in these cities. More active industrial policy measures are required there to create a competitive high-tech manufacturing sector, to stimulate innovation activities and to boost its growth interdependence with modern local services and R&D infrastructure.

scholarly journals International trade in services and inequalities

2016 ◽  
Vol 23 (5) ◽  
pp. 1069-1075 ◽  
Author(s):  
Sylvain Petit
Keyword(s):  
Wage Inequality ◽  
Developed Countries ◽  
Tourism Industry ◽  
Skilled Workers ◽  
Business Services ◽  
Long Run ◽  
Short Run ◽  
Unskilled Workers ◽  
Tourism Services ◽  
The Impact

This study investigates the impact of the international openness in tourism services trade on wage inequality between highly skilled, semi-skilled, and unskilled workers in the tourism industry. The sample covers 10 developed countries and expands over 15 years. A cointegrated panel data model and an error correction model were used to distinguish between the short- and long-run effects. The results are compared to those of openness of business services and manufactured goods. The findings point out that tourism increases wage inequality at the expense of the least skilled workers in the long run and the short run.

scholarly journals Taiwan — A Potential Economic Partner of South Asia

2021 ◽  
Vol 02 (01) ◽  
pp. 2150006
Author(s):  
MOHAMMAD MASUDUR RAHMAN
Keyword(s):  
South Asia ◽  
Computable General Equilibrium ◽  
Bilateral Trade ◽  
Manufacturing Sector ◽  
High Tech ◽  
Investment Agreement ◽  
Alternative Markets ◽  
Economic Partnership ◽  
Partnership Agreement ◽  
Trade And Investment

Taiwan is a major hub of the global supply chains and one of the leading investors not only in China but also in other Southeast Asian markets. Although high trade complementary, bilateral trade between South Asia and Taiwan is only about US$ 9 billion, investment has only picked up recently. The computable general equilibrium (CGE) analysis indicates a substantial economic benefit of bilateral tariffs elimination between Taiwan and its South Asian partners. Taiwan has a substantial comparative advantage in producing high tech manufacturing goods while in South Asian’s main strength is in the resource-based agricultural and light manufacturing sector. Taiwan has been maintained a liberalized trade regime with minimal import tariffs and non-tariff measures (NTM) over the decades. As South Asia is booming, and Taiwan is seeking alternative markets and investments opportunities, it is time to deepen a bilateral economic relationship. South Asia is a market of 1.5 billion people with an emerging middle class along with substantial cheaper labor forces, made an ideal place for investment. A comprehensive economic partnership agreement (CEPA) with a preferential trade and investment agreement would be useful to attract Taiwanese multinationals and seamless trade between South Asia and Taiwan.

scholarly journals A Long Run ARDL Investigation of Manufacturing Adjustment to the Services Economy in Nigeria

2021 ◽  
Vol 9 (3) ◽  
pp. 95-107
Author(s):  
Olumuyiwa Olamade
Keyword(s):  
Capital Accumulation ◽  
Negative Impact ◽  
Manufacturing Sector ◽  
Value Added ◽  
Business Services ◽  
Development Indicators ◽  
Services Sector ◽  
Positive Effects ◽  
Distributed Lag ◽  
Long Run

The long-run equilibrating relationship between the value-added growth of services and manufacturing is investigated in this research. The study is based on the well-established empirical link between manufacturing and service activities, and in particular, manufacturing's servicification. The selected variables' annualized time series were obtained from the World Development Indicators. The paper used the autoregressive distributed lag framework to regress manufacturing value-added growth against service value-added growth while accounting for economic growth, factor input growth, and trade effects. The findings revealed that in Nigeria, a strong performing services sector has a large negative impact on manufacturing performance, whereas capital accumulation and income growth have positive effects. The supply constraint of business services that the manufacturing sector requires is at the root of this finding. The paper advocates for policy frameworks that support the efficient supply of business services as both a manufacturing input and a productivity enhancer for the entire economy.

Services Outsourcing and Productivity Growth

2018 ◽  
Vol 19 (2) ◽  
pp. 192-209 ◽  
Author(s):  
Sonia Mukherjee
Keyword(s):  
Productivity Growth ◽  
Manufacturing Sector ◽  
Core Competencies ◽  
Marketing Research ◽  
Manufacturing Firms ◽  
Professional Services ◽  
Business Services ◽  
Positive Role ◽  
Firm Level ◽  
The Impact

The article studies the impact of outsourcing services on the productivity growth of the Indian manufacturing firms. By the term services we mean different expenses on services incurred by the manufacturing firms, such as, advertising, marketing, research and development, consultancy, auditing, business services, knowledge-based services, technical, legal and other professional services (including information communication and technology services). With further expansion in newer services, a higher demand has come from the Indian manufacturing sector. With intensive usage of services in the manufacturing production process, the performance and the manufacturing can focus on the core competencies with outsourced and cheaper services from expert service provider. For this purpose, the firm-level data have been collected from the annual financial statements of the Centre for Monitoring of the Indian Economy’s Prowess database. The econometric results conclude that services have played a positive role in improving the productivity growth of the aggregate Indian manufacturing firms and at the disaggregated level, especially for industrial groups such as food, beverage and tobacco; textiles, gems and jewellery; transport; machinery; metal, rubber and plastic; leather and footwear; and chemicals, services have played a favourable role in boosting the productivity growth. JEL: D24, L80, L60

Information Technology Offshoring Outsourcing

2011 ◽  
pp. 122-139 ◽  
Author(s):  
Smita Gupta ◽  
Narendra S. Chaudhari
Keyword(s):  
Information Technology ◽  
Social Issues ◽  
Low Cost ◽  
Cost Savings ◽  
Developed Countries ◽  
Offshore Outsourcing ◽  
Business Services ◽  
Job Growth ◽  
Software Development Methodologies ◽  
The U.S

Offshore outsourcing is a term covering a range of information technology (IT) and business services delivered to companies in developed countries by IT personnel based in developing countries. The significant cost savings achieved by the offshore model is the prime factor in its growing acceptance and use. IT software and service outsourcing is becoming a new reality for employers, employees, government and academicians. The widespread use of Internet, standardization of software development methodologies, efficient IT project management techniques, low cost of telecommunications, have provided the necessary thrust for global production of software and services. In this chapter, we analyze the impact of today’s offshore outsourcing movement to the United States economy, education, jobs, wages, and social issues. We suggest that offshoring is a viable economic model. It leads to improved productivity, lower inflation and eventually growth in jobs and wages. The U.S. will also see significant numbers of “in-sourced” jobs because of subsidiaries of foreign based companies. Future job growth in different areas of business and skills, require young students and present IT workforce to acquire them with education and training. Federal Reserve chairman Alan Greenspan has also expressed the need to produce highly skilled workers. The loss of jobs of IT workers is the difficult aspect of offshoring. Laid-off workers should be provided assistance to find a new comparable job, both by the U.S. government and companies. In this chapter, we make some recommendations to reduce, minimize and overcome the hardships caused by the IT outsourcing.

scholarly journals Characteristics and Drivers of the Swiss “Job Miracle”

2016 ◽  
Vol 67 (1) ◽  
Author(s):  
Michael Siegenthaler ◽  
Michael Graff ◽  
Massimo Mannino
Keyword(s):  
Real Wage ◽  
Economic Activity ◽  
Employment Growth ◽  
International Perspective ◽  
Gdp Growth ◽  
Labor Intensity ◽  
Key Factor ◽  
Job Growth ◽  
Wage Increases ◽  
Very High

AbstractSwitzerland’s employment growth since the early 2000s was very high in both historical and international perspective, despite solid real wage increases and only moderate GDP growth. Yet, the reasons for the remarkable creation of jobs are largely unknown. We aim at filling this gap by studying the underlying characteristics and drivers of the Swiss “job miracle”. We first outline the characteristics of the “job miracle” and show that the observed job growth correlates with a substantial increase in the labor intensity of economic activity. We then discuss five potential drivers of the unprecedented employment growth, which are consistent with the facts. Our empirical results suggest that immigration was the key factor in explaining the “job miracle” as it raised local demand and thereby triggered the creation of additional jobs.

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