World Trade in Services

Abstract

Using a newly constructed dataset on trade in services for 192 countries from 1970 to 2014, this paper shows that services currently constitute one-fourth of world trade and an increasingly important component of global production. A detailed analysis of patterns and stylized facts reveals that exports of services are not only gaining strong momentum and catching up with exports of goods in many countries, but they could also trigger a new wave of trade globalization. Research applications of the trade in service dataset on structural transformation, resilience, labor reallocation, and income distribution are outlined.

Trade in Services-Economic Growth Nexus: An Analysis of the Growth Impact of Trade in Services in SADC Countries

“…Loungani et al (2017a) write preliminary evidence suggests that movements in exports of services exhibit a higher correlation with country-level GDP growth outcomes than those in the exports of agricultural or manufacturing goods. This was also the view of Loungani et al (2017b) in their research findings that show a steeper slope for services and GDP compared to the slope between agriculture and manufacturing. Loungani et al (2017b) add that the "magnitude of the correlation coefficient between services growth and per capita GDP growth was 0.60, compared to 0.24 for manufacturing growth versus per capita GDP growth.…”

“…This was also the view of Loungani et al (2017b) in their research findings that show a steeper slope for services and GDP compared to the slope between agriculture and manufacturing. Loungani et al (2017b) add that the "magnitude of the correlation coefficient between services growth and per capita GDP growth was 0.60, compared to 0.24 for manufacturing growth versus per capita GDP growth. In addition, the R-square for service value added plot was 0.51 and the R-square for manufacturing value added was 0.19."…”

Productivity and Trade Growth in Services: How Services Helped Power Factory Asia

“…Data on trade in services are notoriously incomplete. Recent efforts to compile global databases have focused on trade with the world as an aggregate partner (e.g., Loungani et al 2017). While informative for descriptive purposes, these databases are largely not helpful for empirical work, because they do not disaggregate by partner economy.…”

Rethinking Development Policy: Deindustrialization, Servicification and Structural Transformation

“…Notably, this increase occurred mainly 7 Despite facing higher international barriers than goods (Miroudot, Sauvage, and Shepherd, 2013), services are rapidly becoming an increasingly important component for global production and world trade. Based on a newly created dataset Loungani et al (2017) note: "A detailed analysis of patterns and stylized facts reveals that exports of services are not only gaining strong momentum and catching up with exports of goods in many countries, but they could also trigger a new wave of trade globalization." This dataset can help study potentially far-reaching implications of the growth of services production and trade for welfare, income distribution, resilience, labor allocation, and also the nature of structural transformation.…”