Technology in Services Policies for Growth, Trade, and Employment (1988) / Chapter Skim
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Role of Services in the U.S. Economy
Role of Services in the U.S. Economy
Pages 76-98
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From page 76... ...
One view is that the continued growth of services sectors represents a natural progression out of manufacturing into the postindustrial age run by computer-expert information workers. According to this view, as other countries take over the dirty work of manufacturing, the U.S.
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From page 77... ...
These attributes are associated with the services sectors. The computer's ability to play a role in the production of art and music has already been demonstrated; and various recording, transmitting, and playback technologies enable a single physical performance cultural, athletic, and most recently, religious to be experienced repeatedly by audiences of unlimited size around the globe.
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From page 78... ...
Four of the services sell primarily to businesses: Radio and TV Broadcasting, Business Services, Utilities, and Transportation and Warehousing; this concentration is projected to continue to increase for Business Services and Utilities by 1990. Ten more sectors deliver mainly to consumers, especially Private Education and Health and Hospital Services that are used almost exclusively by individuals in their personal capacities.
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From page 79... ...
69) 55 54 48 51 85 Government Postal 52 Services 40 37 44 45 42 73 FinanceC III 79 Auto Repair and Services 37 43 43 41 44 80 Amusements 33 36 31 37 37 75 Real Estate 33 34 33 34 34 76 Hotels; Personal and Repair ServicesC 16 20 29 34 39 78 Eating and Dr~nl~ing Places 26 26 22 21 28 84 Nonprofit Organizations 12 14 16 19 20 72 Retail Trade 12 11 10 8 8 83 Educational ServicesC (Private)
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From page 80... ...
Production (%) 67a Transportation; Warehousing 128,264 61 Railroads and related services 22,462 74 Local passenger transportation 10,899 31 Motor freight transportation and warehousing 47,141 67 Water transportation 16,873 53 Air transportation 24,846 93 Pipelines 3,346 91 Freight forwarders 969 86 Arrangement of passenger transportation 1,727 90 77b Business Services 161,969 81 Miscellaneous repair shops 10,262 86 Services to buildings 5,260 80 Personnel supply 5,035 68 Computer and data processing 15,395 84 Consulting and related 13,934 66 Detective and protective 3,008 100 Equipment leasing 9,850 92 Photographic and related 3,744 51 Other business services 9,037 93 Advertising 36,292 97 Legal 20,512 44 Engineering and related 16,345 90 Accounting and related 13,298 85 aInstitute of Analysis sector 67 corresponds to Bureau of Economic Analysis (BEA)
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From page 82... ...
input requirements for the delivery of services will be discussed.3 The economically most important total requirements to deliver $1,000 worth of Transportation Services, Communications Services, Insurance, Business Services, and Health Care in 1977 are shown in Table 4. Reading down the first column, for example, shows that significant amounts of Refined Petroleum ($127)
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From page 83... ...
Transportation and Warehousing Services, Utilities, and Wholesale Trade were used more intensively in the delivery of all manufactured goods than in the delivery of any of the services, whereas Communications Services, Finance, Insurance, and Government Postal Services appear to be equally important in the production of goods and services. Changes between 1963 and 1977 in the requirements for these services are shown in Table 7.
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From page 86... ...
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From page 90... ...
It is notable that the services sectors are not among the principal users of the services shown in this table. Communications Services, Finance, Insurance, and Government Postal Services are required in relatively small dollar amounts for the delivery of most outputs—a high of $20-$30 worth per $1,000 of deliveries, contrasted with about $100 worth for the last group of services discussed.
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From page 91... ...
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From page 92... ...
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From page 93... ...
It is useful to examine the treatment of secondary and captive production in official data series in the case of physical outputs because the distinctions are more familiar in this context. Secondary production records outputsother than the primary product that are produced for sale or, in some cases, for transfer to another establishment within the same firm.
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From page 94... ...
In industry data series, the inputs of these administrative units are allocated among the establishments they serve. This is represented as an increase in the operating unit's purchases of personnel, structures, paper, and so on not as a transfer of accounting services or data processing services.
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From page 95... ...
Captive production is a characteristic, not an incidental, attribute of business services, yet it has gone completely unrecorded until now. Identification
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From page 96... ...
A preliminary classification scheme is proposed in Table 11: different categories of households can be expected to execute these processes through characteristic combinations of purchasing versus their own production of various goods and services. The captive production of business services has a close analogue in unpaid household labor: what households do for themselves must be examined as a basis for understanding their changing patterns of purchases.
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From page 97... ...
manufacturing base probably harms services sectors more than it helps them because the manufacturing sectors not only provide inputs but also absorb outputs of services. An initial assessment of the interconnections of household and services sector activities identified several large services sectors that divide their output about equally between households and businesses.
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From page 98... ...
, it is still the only data base on which the analysis reported in this paper can be based. In addition to compatible tables for all benchmark years, the data base includes detailed matrices of labor requirements and of capital requirements for the replacement and the expansion of production capacity.
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