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Contents

EAER Conference Proceedings

Global Economy in Turbulent Times: Challenges and Opportunities in Trade and Finance Volume 3 (2018), pp. 70-87. Session 1

DOI https://dx.doi.org/10.11644/KIEP.EAER.Conf.2018.30

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Abstract

Servicification of a manufacturing firm is related to within-firm resource reallocation toward service activities. Using Korean firm-establishment matched data, we examine changes in service employment share within manufacturing firms over the 2008?2013 period. Our empirical findings suggest that the Korean multinational firms owning manufacturing subsidiaries in emerging countries has changed their employment structure toward service workers more than non-multinational firms. Furthermore, the servicification appears more evident with regular workers than with temporary workers as well as with R&D workers than with wholesale-and-retail trade workers. Our findings suggest that the relocation of manufacturing facilities to foreign countries by multinational firms reorganizes their domestic manufacturing toward service-related activities.

Keywords

Employment, Manufacturing, Multinational Enterprise, Servicification