Trade in services: Opening markets to create opportunities

Abstract

This paper reviews the role of services in development and growth, the potential role of trade in services as a driver of the productivity performance of sectors that use services as inputs, and the links between services policies and domestic trade costs. Barriers to trade in services have direct as well as indirect effects on cross-border trade and investment, but research suggests that the extent to which countries will benefit from open services regimes and regional integration of services markets depends on complementary efforts to improve economic governance and regulatory regimes.

Competitiveness and diversification of service exports in sub-Saharan Africa: The case of the East African Community

“…If global demand for one sector drops, a country with diversified exports can rely on other service-exporting sectors. Moreover, there are positive externalities between goods exports and service exports (Hoekman 2017). Additionally, increased service exports from developing economies have a role to play in the economic transformation of Africa, and in meeting the Sustainable Development Goals.…”

Effect of the Internet on Services Export Diversification

“…Several studies have emphasized the role of services in global and regional value chains as intermediate inputs to manufacturing 2) (e.g., Baldwin et al, 2015;Hoekman & Shepherd, 2017;Lanz & Maurer, 2015). Many researchers have highlighted the importance of the services sector for economic growth, poverty reduction, and development, including sustainable development (e.g., Adlung, 2007;Balchin et al, 2016;Fiorini & Hoekman, 2018;François & Hoekman, 2010;Hoekman, 2017;Hoekman & Mattoo, 2008;McGuire, 2002;Roy, 2019).…”

Making Sense Out of U.S. Trade Policy or High-Stakes Poker Game?

“…Under the Trade and Tariff Act of 1984, the USTR was assigned the responsibility for developing and coordinating implementation of U.S. policies concerning trade in services (Borchert, Gootiz, & Mattoo, 2012;Hoekman, 2017). Francois and Hoekman (2010, p. 642) noted the important "linkages" between international trade and foreign direct investment in services "and the general pattern of productivity growth and economic development.…”

“…• "Import policies (e.g., tariffs and other import charges, quantitative restrictions, import licensing, customs barriers, and other market access barriers) (Bacchetta & Bora, 2007;Noonan, 2008;Pyne & Roy, 2018); • Sanitary and phytosanitary measures and technical barriers to trade (Murina & Nicita, 2015;Kang, 2017); • Government procurement (e.g., "buy national" policies (Larch & Lechthaler, 2015) and closed bidding) (Hufbauer & Moran, 2015); • Export subsidies (e.g., export financing on preferential terms and agricultural export subsidies that displace U.S. exports in third country markets) (Brown & Troutt, 2018); • Lack of intellectual property protection (e.g., inadequate patent, copyright, and trademark regimes and enforcement of intellectual property rights) (Flynn, 2010;Helfer, 2010;Hunter & Lozada, 2010;Bruns, 2017); • Services barriers (e.g., limits on the range of financial services offered by foreign financial institutions, restrictions on the use of foreign data processing, and barriers to the provision of services by foreign professionals) (Hoekman, 2017); • Investment barriers (e.g., limitations on foreign equity participation and on access to foreign government-funded research and development programs, local content requirements, technology transfer requirements and export performance requirements, and restrictions on repatriation of earnings (so-called "blocked currencies" (Stanley, 1990)), capital, fees and royalties) (Smyth, Kerr, & Phillips, 2017); • Government-tolerated anticompetitive conduct of state-owned enterprises (Joo, Shim, & Sul, 2017) or private firms that restricts the sale or purchase of U.S. goods or services in the foreign country's markets; • Digital trade barriers (e.g., restrictions and other discriminatory practices affecting cross-border data flows, digital products, Internet-enabled services, and other restrictive technology requirements) (Selby, 2017;Malopulos, 2018); and, • Other barriers (barriers that encompass more than one category, e.g., bribery and corruption, or that affect a single sector)" (Hunter, Mest, & Shannon, 2911;Hunter & Mest, 2015).…”