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Romania’S Trade In Services: Reaping The Benefits Of Globalization

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  • Agnes Ghibuţiu

    (Institute of World Economy)

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    Abstract

    Ample anecdotal evidence over the last couple of years points to Romania’s growing attractiveness as location for offshoring decisions by Western companies, and the subsequent rise in offshoring-related services activities. This paper aims to explore if and to what extent these relatively new developments are backed up by official trade and FDI statistics. Drawing on recent literature on the topic of services offshoring, it analyzes Romania’s trade and FDI flows in services over the 1995-2008 period in terms of dynamics, composition and performance. The findings of the empirical investigation suggest that the remarkable export growth in some individual services categories in the last years, as well as the positive changes under way in the patterns of services trade are largely driven by globalization, i.e. by enhanced offshoring activities hosted by the Romanian economy.

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    File URL: http://www.rebe.rau.ro/RePEc/rau/journl/SU09/REBE-SU09-A2.pdf
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    Bibliographic Info

    Article provided by Romanian-American University in its journal Romanian Economic and Business Review.

    Volume (Year): 4 (2009)
    Issue (Month): 2 (June)
    Pages: 13-32

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    Handle: RePEc:rau:journl:v:4:y:2009:i:2:p:13-32

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    Keywords: trade in services; FDI; offshoring; Romania;

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    1. Oecd, 2006. "The Share of Employment Potentially Affected by Offshoring: An Empirical Investigation," OECD Digital Economy Papers 107, OECD Publishing.
    2. Gabor Hunya & Magdolna Sass, 2005. "Coming and Going: Gains and Losses from Relocations Affecting Hungary," wiiw Research Reports 323, The Vienna Institute for International Economic Studies, wiiw.
    3. Mary Amiti & Shang-Jin Wei, 2004. "Fear of Service Outsourcing," IMF Working Papers 04/186, International Monetary Fund.
    4. Jacob Funk Kirkegaard, 2005. "Outsourcing and Offshoring: Pushing the European Model Over the Hill, Rather Than Off the Cliff!," Working Paper Series, Peterson Institute for International Economics WP05-1, Peterson Institute for International Economics.
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