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Expert briefing
Publication date: 15 October 2019

Services trade outlook.

Book part
Publication date: 24 September 2010

Philippa Dee and Ndiame Diop

The purpose of this chapter is to benchmark Tunisia against other emerging economies in terms of the regulatory barriers affecting particular services sectors and to assess the…

Abstract

The purpose of this chapter is to benchmark Tunisia against other emerging economies in terms of the regulatory barriers affecting particular services sectors and to assess the economy-wide effects of further liberalizing these services trade restrictions, compared with reducing the dispersion in barriers to its merchandise trade. On the basis of a rather restricted sample of services sectors, partial regulatory reform would yield gains roughly equivalent to full unilateral reform of manufacturing tariffs, but roughly one-tenth the gains from full bilateral reform of border protection in agriculture with the European Union. The adjustment costs associated with these services trade reforms would be minimal. The chapter identifies the reasons why the gains from these services reforms are relatively small and argues that a wider set of reforms could provide win-win outcomes and even fewer adjustment costs. By contrast, the gains in agriculture and manufacturing tend to come at the expense of domestic output in the reforming sectors – the gains are greater, but so too are the adjustment costs.

Details

New Developments in Computable General Equilibrium Analysis for Trade Policy
Type: Book
ISBN: 978-0-85724-142-9

Keywords

Book part
Publication date: 10 April 2023

Soukavong Bounthone and Kyophilavong Phouphet

In the Lao People’s Democratic Republic (Lao PRD), the services sector accounts for more than 41% of GDP and more than 80% of total trade (World Bank, 2021). Empirical studies…

Abstract

In the Lao People’s Democratic Republic (Lao PRD), the services sector accounts for more than 41% of GDP and more than 80% of total trade (World Bank, 2021). Empirical studies show that most of the services trade occurs in the travel and tourism sectors, accounting for more than 50% of the total services trade in the Lao PDR. The services sector also plays an essential role in the Lao PDR’s wholesale and retail sectors, which employ the most significant number of people across all services sectors. The services trade balance was in a surplus between 1997 and 2011, though in 2012, it entered a significant deficit that continues to the present. This study investigates the link between services trade and economic growth in the Lao PDR, building on a recent analysis of the services trade in various economic and economic growth. The authors use econometric methods such as the autoregressive distributed lag (ARDL) bound test and the Granger causality test to analyze time-series data for the Lao PDR from 1990 to 2019. The econometric results demonstrate the long-run relationship between economic growth and variables related to the services trade. This indicates the government and policymakers of the Lao PDR should invest in infrastructure, particularly in trade facilitation and the liberalization of the services sector, to facilitate the acceleration of economic growth.

Details

Comparative Analysis of Trade and Finance in Emerging Economies
Type: Book
ISBN: 978-1-80455-758-7

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Article
Publication date: 4 May 2023

Jian Chen, Di Zhao, Yan-Nan Yu and Si-Yuan Wang

The authors empirically examined the theoretically recognized industrial linkages between manufacturing and services from the trade perspective. In particular, they confirmed the…

Abstract

Purpose

The authors empirically examined the theoretically recognized industrial linkages between manufacturing and services from the trade perspective. In particular, they confirmed the trade effect of manufacturing on services, given that global value chain fragmentation pervades and splits manufacturing and services segments separately in developed and developing countries.

Design/methodology/approach

Based on observations of 47 countries with manufacturing and service trade data from 1990 to 2020 and with gravity model specification, the authors primarily used the Poisson pseudo-maximum likelihood (PPML) estimation with multiple levels of fixed effects. Considering that many zero values are included in the dependent variable and potential endogeneity, other methods such as Tobit regression, Heckman estimation and two-stage least squares estimation (2SLS) are used. Subsample estimation also supplemented the empirical research.

Findings

The results showed that manufacturing trade is a stepping-stone rather than an obstacle to service trade. This finding exhibited significant robustness under different model specifications, instrumental variable estimation and subsample checks. Moreover, in contrast to the north–north country ties, manufacturing trade between northern and southern countries has played a prominent stepping-stone role; meanwhile, manufacturing trade among core–peripheral countries has a considerably more significant impact than the outcomes of core–core and peripheral–peripheral countries.

Originality/value

The authors provided direct clarification and revealed that trade in manufacturing remains the demand basis for service trade. As trade in manufacturing and services are typical phenomena of transnational production linkages, the authors suggested exploring the underlying role of global value chain (GVC) fragmentation and the offset and even barrier effect of biased institutional arrangements on GVC fragmentation.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

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Article
Publication date: 3 January 2023

Aleksandra Gaweł and Ewa Mińska-Struzik

The article examines whether cross-border trade in digitally delivered services (DDSs) has an influence on European female entrepreneurship. Two research questions were asked to…

Abstract

Purpose

The article examines whether cross-border trade in digitally delivered services (DDSs) has an influence on European female entrepreneurship. Two research questions were asked to assess the potential impact of trade in DDSs both on the import and export sides.

Design/methodology/approach

To answer the research questions, the panel data for 26 European countries for the years 2008–2019 were implemented to estimate panel regression models. Based on the results of variance inflation factors (VIFs) and Breusch–Pagan and Hausman tests, the estimations of panel models were conducted for female entrepreneurship as a dependent variable and measures of import and export of digitally delivered services as independent variables.

Findings

The imports of digitally delivered services positively affect female entrepreneurship in European countries, whilst the impact of the export of digitally delivered services is statistically insignificant. The possibility of being a customer of digitally delivered services through its import may become a gender equaliser in entrepreneurship. However, as differences in digital competencies and growth intentions prevent women from acting as the providers of digitally delivered services, the export of DDSs can sustain the existing gender gap in entrepreneurship.

Practical implications

The research findings provide the added value in the field of female entrepreneurship, referring to institutional theory and human capital theory. The import of DDSs seems to support female entrepreneurs through the reduction of cultural distance, whilst the human capital theory gains the perspective of limited digital competencies needed to export DDSs as a pathway to the internationalisation of women's ventures. The practical implications for trade policy, digitalisation and gender equality should aim not only at supporting women's export propensity, but should also focus on the development of their digital competencies.

Originality/value

Instead of commonly used perspective of international entrepreneurship, the authors implemented the lens of cross-border trade to check whether there is a linkage between internationalisation, measured by imports and exports of DDSs and female entrepreneurship. Trade economists neglect the gender dimension in their studies of pro-growth internationalisation. In contrast, research on female entrepreneurship does not consider the potential of cross-border trade in DDSs as a gender equaliser.

Details

International Journal of Gender and Entrepreneurship, vol. 15 no. 3
Type: Research Article
ISSN: 1756-6266

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Article
Publication date: 4 August 2022

Alya Al-Fori and Azmat Gani

Islamic finance is becoming a core part of the financial services economy in the Middle East countries. There is a strong likelihood that Islamic finance is also driving the…

Abstract

Purpose

Islamic finance is becoming a core part of the financial services economy in the Middle East countries. There is a strong likelihood that Islamic finance is also driving the expansion of trade in insurance services. However, research on Islamic finance’s effect on trade in insurance services is scant. This study aims to fill this gap by investigating if Islamic finance has promoted trade in insurance services.

Design/methodology/approach

This study adopts the gravity modelling framework and the panel data estimation procedure in understanding the effects of Islamic finance on trade in insurance.

Findings

The empirical results reveal a statistically significant positive correlation of Islamic finance with the exports and imports of insurance services. Economic sizes (domestic and trading partners), growth in trading partners, cost of doing business, legal rights and financial freedom are other statistically significant determinants.

Research limitations/implications

It makes a positive contribution to the Islamic financial services literature. Islamic finance is an integral part of the conventional banking and financial sector in the Middle East that actively fosters the expansion of insurance services that need support, given its essential role in services trade.

Originality/value

This study is unique as it directs attention to the role of Islamic finance in fostering trade in insurance services within an inclusive modelling framework that has been overlooked in the Islamic finance literature.

Details

Journal of Financial Economic Policy, vol. 14 no. 6
Type: Research Article
ISSN: 1757-6385

Keywords

Article
Publication date: 19 November 2018

Min Hui Chen

The purpose of this paper is to explore the value added of exports of services, which increasingly involve intermediate inputs to manufacturing and are indirectly embodied in

Abstract

Purpose

The purpose of this paper is to explore the value added of exports of services, which increasingly involve intermediate inputs to manufacturing and are indirectly embodied in intermediate and finished good exports to the global market earned by Taiwan and South Korea.

Design/methodology/approach

This paper uses the World Input-Output Database to examine and compare the competitiveness of service industry between Taiwan and South Korea in China from 1995 to 2011. The author measures the value added of export in two ways: value added in trade (VAiT) and trade in value added (TiVA).

Findings

The proportion of domestic (intermediate and final demand) VAiT was created by Taiwanese and South Korean exports to China. The services amount share of value added embodied in Taiwanese electrical and optical equipment (ELE) exports to China increased gradually (38.0–45.7 percent) from 1996 to 2011, that was more than that of South Korea (26.7–23.3 percent). Taiwanese financial and business (F&B) service contributed to Taiwanese ELE production exported to China. In service sectors, the proportion of VAiT of Taiwanese F&B service embodied in ELE exports to China increased annually (9.8–11.5 percent), that was similar to that of South Korea (12.2–11.3 percent). Thus, F&B sector played an increasingly important role in service sectors. Taiwanese F&B promotes the ELE export to China with higher efficiency than South Korea does.

Originality/value

Over the past two decades, the development of information technology and the growth of international specialization and fragmentation of production processes have brought about a global value chains (GVCs) phenomenon in services, which has already been taking place in manufacturing for a long time. Intangible value added of services increasingly involved intermediate inputs from manufacturing and were indirectly embodied in intermediate and finished goods exported to the global market. The focus of this paper is to analyze how the service industry participates in the development of the GVC, with emphasis on the export of ELE production to China in the bilateral trade of Taiwan and Korea with China. In addition to the value-added components, the exports of F&B intermediate products to China have been increasing year by year, and Taiwanese is higher than South Korean. In the bilateral trade between Taiwan or Korea and China, for ELE production exported to China, double counted part of intermediate products is increasing year by year. In terms of the value added of the double counting of F&B exports to China, Taiwan is higher (PDC, 31.23–17.26 percent) than South Korea. (PDC, 8.7–15.12 percent). South Korea and China are not as closely related as Taiwan and China.

Details

Journal of Korea Trade, vol. 22 no. 4
Type: Research Article
ISSN: 1229-828X

Keywords

Open Access
Article
Publication date: 31 December 2006

Prabir De

Services trade has registered a dynamic evolution in almost all developing countries. Despite the rising share in world services trade by developing countries, the gap between…

Abstract

Services trade has registered a dynamic evolution in almost all developing countries. Despite the rising share in world services trade by developing countries, the gap between developed and developing countries in service exports have been widening. Developed economies have become service exporters, while developing economies are found to be more receptive towards service imports. This paper attempts to gain some insight into the actual nature and extent of exports of services from developing countries, and examines their emergence as significant players of services trade as well as the underlying factors and broader implications. One of the conclusions of this paper is that developing countries successfully export a variety of services to both developed and developing countries, whereas a relatively limited number of developing countries seem to be heavily involved in services exports trade across a range of sectors. This, alternatively, indicates that services exports, on a large international level, are associated with higher levels of development and that not all developing countries are yet in a position to be large-scale exporters.

Details

Journal of International Logistics and Trade, vol. 4 no. 2
Type: Research Article
ISSN: 1738-2122

Keywords

Article
Publication date: 15 June 2012

M. Rafiqul Islam, Shawkat Alam and Pundarik Mukhopadhaya

The multilateral liberalisation of trade in education under the General Agreement on Trade in Services (GATS) has achieved little progress. In a bid to overcome this lacklustre…

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Abstract

Purpose

The multilateral liberalisation of trade in education under the General Agreement on Trade in Services (GATS) has achieved little progress. In a bid to overcome this lacklustre education trade liberalisation under the World Trade Organization (WTO), the purpose of this paper is to examine education trade bilateralism between Australia and India as an alternative to multilateralism. The end is to maximise bilateral trade liberalisation in education as a means to facilitate dynamic productivity gains, export opportunities, market competition, and FDI in the sector. The combined effect of this bilateralism would help accelerate economic growth in both countries, which is likely to generate domino effects on other WTO members, thereby contributing to the multilateral liberalisation of trade in services under the WTO.

Design/methodology/approach

The research methodology is analytical, based on pertinent empirical and secondary information.

Findings

Strong complementarities and synergies are found for the integration of trade in education services between Australia and India. Of the major exporters of education services, Australia enjoys the most competitive edge and comparative advantage in the Asia‐Pacific. India faces strong demands for quality education services due to its economic reforms and expansion requiring knowledge‐based workforce for high efficiency and productivity and has become a major importer of education services in the region.

Originality/value

The paper identifies new means of consolidating Australia and India's existing trade, niche areas of further opportunities, and potential challenges to be confronted for greater economic integration through trade in education. The originality of the paper lies in its core message that education trade bilateralism can be a valuable stepping stone, in many instances, to multilateral trade in education.

Details

Journal of International Trade Law and Policy, vol. 11 no. 2
Type: Research Article
ISSN: 1477-0024

Keywords

Article
Publication date: 1 August 1999

Terry Clark and Daniel Rajaratnam

As the twentieth century draws to a close, trade in services has begun to dominate the economies of many nations. International trade in services has also grown significantly, yet…

2709

Abstract

As the twentieth century draws to a close, trade in services has begun to dominate the economies of many nations. International trade in services has also grown significantly, yet little research has been undertaken to understand international services. Theory lags practice by a considerable degree. This paper examines the international trade and services marketing literature, develops a definition and classification scheme of four types of international services, discusses recent trends in international services data and presents some perspectives on the future of international services.

Details

Journal of Services Marketing, vol. 13 no. 4/5
Type: Research Article
ISSN: 0887-6045

Keywords

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