The paper
How do services shape manufacturing competitiveness? Firm-level evidence from more than 100 developing countries links services productivity and access to services inputs with manufacturers’ productivity and export performance.
Research findings
- Higher services productivity is associated with higher manufacturing productivity, particularly where manufacturers use services more intensively.
- Restrictions on foreign establishment in services, and restrictions in transport and retail distribution, are especially closely linked to weaker manufactured exports.
Policy takeaways
- Include services market access and regulation in manufacturing competitiveness strategies.
- Pair improvements in customs procedures with reforms that improve access to transport, logistics, and distribution services.