Is Trade in Services Healthier than Trade in Goods?

Abstract

There has been an ongoing debate about the impact of trade openness on the health. This study aims to inform this debate by comparing health impacts of trade in services vis-à-vis trade in goods. Prima facie, the former, due to association with the higher human capital requirement and less pollution, may have a higher positive health impact. The main finding is that the trade in services has a higher positive impact on the health status compared to that of the trade in goods. However, for the least developed countries trade in goods is the dominant factor impacting the health status.