dunnettreader + manufacturing + services   2

Jonathan L. Willis and Guangye Cao - US economy becoming less sensitive to interest rate changes - via Hutchins Roundup | Brookings Institution July 30 2015
Jonathan L. Willis and Guangye Cao of the Kansas City Fed find that, prior to 1985, a 0.25 percentage point reduction in the federal funds rate was associated with a roughly 0.2 percent increase in employment over the following 2 years—255,000 jobs in today’s market—but that the same rate cut today has almost no impact on employment. The authors argue that this is due to a weaker link between short- and long-run interest rates and a general shift in employment from interest rate sensitive industries like manufacturing and construction to less sensitive service providing sectors. -- downloaded pdf to Note
paper  US_economy  monetary_policy  interest_rates  investment  manufacturing  services  unemployment  economic_growth  monetary_policy-effectiveness  macroeconomic_policy  downloaded 
july 2015 by dunnettreader
Prakash Loungani and Saurabh Mishra - Not Your Father's Service Sector -- Finance & Development, June 2014
A long-standing truism in California’s Silicon Valley is that “70 percent of hardware is software”—early recognition of the link between sales of computers and software services. It is a phenomenon that now extends beyond the computer industry. Services have become the glue that binds many manufacturing supply chains. ...Recognizing this interdependence, companies are shifting from “selling products to selling an integrated combination of products and services that deliver value,” a development that the academic literature refers to as the “servitization of manufacturing” .... Companies are more open today to the incorporation of products and services from other vendors if it helps them establish and maintain a relationship with their customers. To reap the benefits of these trends, even developing economies where manufacturing still looms large must develop state-of-the-art services. Such services are needed for manufacturing firms to connect to global value chains and develop competitiveness in more skill-intensive activities along the value chain. Some countries may be able to use their comparative advantage in labor costs to become exporters of some intermediate or final service products. In others, services may pose lower barriers to entry than capital-intensive industries or offer an easier route to employment for women than other available options. Countries such as Malaysia could take advantage of the globalization of services to escape a potential middle-income trap.
global_economy  supply_chains  services  trade  emerging_markets  globalization  manufacturing  exports  women-work 
june 2014 by dunnettreader

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