Impact of services trade on economic growth and current account balance: Evidence from India

Thomas, Mini P.

doi:10.1080/09638199.2018.1538383

Cited by 13 publications

(12 citation statements)

References 14 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Similarly, George (2014), Yüksel (2017b), Saddimbah (2014), Karahan and Çolak (2017), Gokten and Karatepe (2016), Aydın and Esen (2016) and Thomas (2016) are also other studies which reached the same conclusion. They claimed that current account deficit problem should be solved in order to provide sustainable economic growth.…”

Section: Literature Review On Economic Growthmentioning

confidence: 61%

A Historical Analysis of The Economic Development of The USA (1947-2017)

Uzunkaya

Dınçer

Yüksel

2019

MANAS Sosyal Araştırmalar Dergisi

View full text Add to dashboard Cite

The aim of this study is to evaluate economic improvement of the USA. For this purpose, the quarterly data for the periods between 1947 and 2017 is taken into the consideration. Therefore, focusing on this long period provides a historical view so that more appropriate results can be achieved. Moreover, economic growth of the USA is considered as dependent variable whereas four different subtitles of GDP (consumption, private investment, government expenditure and net export) are selected as independent variables. Furthermore, multivariate adoptive regression spline (MARS) methodology is used in the analysis process. The findings show that private investment, government expenditure and net export have a positive relationship between economic growth. It is identified that the positive effect reduces when the percentage of government expenditure exceeds 22.2%. On the other side, in case of negative net export and having lower investment ratio than 16.3%, economic development of US will be affected negatively. These results give very important information that instead of consumption, other three subtitles of GDP make a contribution to the economic development of US. By considering these results, it is recommended that US should mainly implement growth strategies by focusing on private investment and net export. Within this framework, tax advantages for these investors can be provided to reach this objective. In addition to this condition, government should also give incentives to improve industrial production so that investment and export can be increased.

show abstract

Section: Literature Review On Economic Growthmentioning

confidence: 61%

A Historical Analysis of The Economic Development of The USA (1947-2017)

Uzunkaya

Dınçer

Yüksel

2019

MANAS Sosyal Araştırmalar Dergisi

View full text Add to dashboard Cite

show abstract

“…To perform this analysis, we estimate another variant of model (1) that includes the interaction variable between the variable "HHI" and a variable denoted "GRSERVEXP", which measures the services exports growth rate (%). In light of the finding by some studies that services exports positively affect economic growth (e.g., Alege and Ogundipe, 2015;Dash and Parida, 2013;El Khoury and Savvides, 2006;Gabrielle, 2004;2006;Hoekman and Mattoo, 2008;Lorde et al 2011;Thomas, 2019), we expect export product diversification to promote economic growth in the context of higher growth of services exports. Table 2 reports the estimations' outcomes that allow investigating how services export diversification influences economic growth when countries further open-up to international trade.…”

Section: Wherementioning

confidence: 79%

“…The few existing studies on the effect of trade in services on economic growth have reported a positive effect on economic growth[3] on services exports (e.g., Alege and Ogundipe, 2015;Dash and Parida, 2013;El Khoury and Savvides, 2006;Gabrielle, 2004;2006;Hoekman and Mattoo, 2008;Lorde et al 2011;Thomas, 2019). Other studies on the relationship between services exports and economic growth have rather looked at the effect of services export sophistication on economic growth (Anand et al, 2012;Mishra et al, 2011;Stojkoski et al, 2016).…”

Section: Introductionmentioning

confidence: 99%

Services Export Diversification and Economic Growth

Gnangnon

2020

Preprint

View full text Add to dashboard Cite

The present article investigates the effect of services export diversification on economic growth by relying on a sample of 131 countries over the period 1985-2014. The empirical results, based on the two-step system Generalized Methods of Moments (GMM), has suggested that services export diversification enhances economic growth in developing countries, whereas in High Income Countries (HICs), services export specialization promotes economic growth. Furthermore, services export diversification enhances economic growth as countries experience a rise in their services exports growth, with the magnitude of this positive effect increasing as the growth rate of services exports rises. Finally, services export diversification tends to be positively associated with economic growth, but as countries enjoy greater trade openness, they tend to enhance their services export specialization so as to enjoy higher economic growth. Interestingly, it is services export specialization that promotes economic growth as countries better integrate into the international trade market. One key message conveyed by the analysis is the importance of services export diversification (or concentration) for economic growth, including when countries further open up to international trade.

show abstract

“…The literature on the determinants of services trade has discussed whether the international trade theory that applies to trade in goods is also valid for services trade. Studies such as Hill (1977) and Morgan and Snowden (2007) have highlighted the existence of differences in goods and services, but according to other works such as Hindley and Smith (1984), these differences do not El Khoury and Savvides, 2006;Dash and Parida, 2013;Gabrielle, 2006;Hoekman and Shingal, 2017;Lorde et al, 2011;Mishra et al, 2011;Thomas, 2019). 7 Studies concerning the determinants of trade in services (notably services exports) include for example Anand et al (2011) Choi (2010); Clarke, 2008;Eichengreen and Gupta (2013a, b); Gnangnon and Iyer, 2018;Freund and Weinhold (2002); Gani and Clemes (2013); Goswami et al (2012); Kandilov and Grennes (2010); Karam and Zaki (2013); Kimura and Lee (2006); Morgan and Snowden (2007); Li et al (2016); Sim (2003, 2005) necessarily apply to trade.…”

Section: Theoretical Discussion On How Aft Flows Could Affect Servicementioning

confidence: 99%

Aid for Trade and services export diversification in recipient countries

Gnangnon

2020

Australian Economic Papers

View full text Add to dashboard Cite

This article examines the effect of Aid for Trade (AfT) flows on services export diversification in recipient-countries. The empirical analysis has relied on a sample of 100 recipient-countries (of which 31 Least developed countries-LDCs) over the period 2002-2014 and used the two-step system Generalized Methods of Moments (GMM) approach. It shows that total AfT flows always exert a positive effect on services export diversification over the full sample, with the magnitude of this positive effect being higher for less advanced countries such as LDCs than for relatively advanced economies. This finding also applies to the effect of the cumulated AfT flows on services export diversification. However, we find that the components of total AfT flows-namely AfT for services sectors and AfT for non-services sectors-exert a higher positive effect on services diversification in less advanced countries, notably LDCs than in relatively advanced countries. Specifically, for countries whose real per capita income exceed a certain level, these two types of capital inflows are associated with greater services export concentration. These findings have important policy implications for developing countries and notably the poorest countries among them.

show abstract

Impact of services trade on economic growth and current account balance: Evidence from India

Cited by 13 publications

References 14 publications

A Historical Analysis of The Economic Development of The USA (1947-2017)

A Historical Analysis of The Economic Development of The USA (1947-2017)

Services Export Diversification and Economic Growth

Aid for Trade and services export diversification in recipient countries

Contact Info

Product

Resources

About