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Services Trade and Policy

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  • Joseph F. Francois
  • Bernard Hoekman

Abstract

Since the mid-1980s a substantial body of research has taken shape on trade in services. Much of this is inspired by the WTO or regional trade agreements, especially the EU. However, an increasing number of papers focus on the impacts of unilateral services sector liberalization. The literature touches on important linkages between trade and FDI in services and the general pattern of productivity growth and industrial development. This paper surveys the literature on services trade, focusing on contributions that investigate the determinants of international trade and investment in services, the potential gains from greater trade (and liberalization) and efforts to cooperate to achieve such liberalization through trade agreements. There is increasing evidence that services liberalization is a major potential source of welfare gains, and that the performance of service sectors, and thus services policies, may be an important determinant of trade volumes, the distributional effects of trade, and economy-wide growth. At the same time, they are also an important source of increasing political unease about the impacts of globalization on labor markets.

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Bibliographic Info

Paper provided by Department of Economics, Johannes Kepler University Linz, Austria in its series Economics working papers with number 2009-03.

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Length: 54 pages
Date of creation: Mar 2009
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Handle: RePEc:jku:econwp:2009_03

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Keywords: trade in services; WTO; GATS; trade agreements; economic development; services and growth; modes of supply; trade and FDI linkages; foreign affiliates trade;

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References

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  1. Robert E. Baldwin & Fukunari Kimura, 1998. "Measuring U.S. International Goods and Services Transactions," NBER Chapters, in: Geography and Ownership as Bases for Economic Accounting, pages 9-48 National Bureau of Economic Research, Inc.
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  6. Cho, Yoon Je, 1988. "Some Policy Lessons from the Opening of the Korean Insurance Market," World Bank Economic Review, Oxford University Press, vol. 2(2), pages 239-54, May.
  7. Markusen, James R., 2002. "Multinational Firms and the Theory of International Trade," MPRA Paper 8380, University Library of Munich, Germany.
  8. Victor R. Fuchs, 1968. "The Service Economy," NBER Books, National Bureau of Economic Research, Inc, number fuch68-1, March.
  9. Walmsley, Terri Louise & Winters, L. Alan, 2003. "Relaxing the Restrictions on the Temporary Movements of Natural Persons: A Simulation Analysis," CEPR Discussion Papers 3719, C.E.P.R. Discussion Papers.
  10. Robert E. Baldwin & Robert E. Lipsey & J. David Richards, 1998. "Geography and Ownership as Bases for Economic Accounting," NBER Books, National Bureau of Economic Research, Inc, number bald98-1, March.
  11. Fukunari Kimura & Hyun-Hoon Lee, 2006. "The Gravity Equation in International Trade in Services," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(1), pages 92-121, April.
  12. Ximena Clark & David Dollar & Alejandro Micco, 2004. "Port Efficiency, Maritime Transport Costs and Bilateral Trade," NBER Working Papers 10353, National Bureau of Economic Research, Inc.
  13. Joseph Francois & Julia Woerz, 2007. "Producer Services, Manufacturing Linkages, and Trade," Tinbergen Institute Discussion Papers 07-045/2, Tinbergen Institute.
  14. Arjan Lejour & Hugo Rojas-Romagosa & Verweij. G., 2007. "Opening services markets within Europe; modelling foreign establishments in a CGE framework," CPB Discussion Paper 80, CPB Netherlands Bureau for Economic Policy Analysis.
  15. Fixler, Dennis J. & Siegel, Donald, 1999. "Outsourcing and productivity growth in services," Structural Change and Economic Dynamics, Elsevier, vol. 10(2), pages 177-194, June.
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