IDEAS home Printed from https://ideas.repec.org/p/oec/traaab/212-en.html
   My bibliography  Save this paper

Multinational production and trade in services

Author

Listed:
  • Andrea Andrenelli

    (OECD)

  • Charles Cadestin

    (OECD)

  • Koen De Backer

    (OECD)

  • Sébastien Miroudot

    (OECD)

  • Davide Rigo

    (OECD)

  • Ming Ye

    (OECD)

Abstract

Using the OECD analytical AMNE database, this paper provides new evidence on the services activities of multinational enterprises (MNEs) and discusses the relationship between cross-border trade in services and the production of services through foreign affiliates (“mode 3” trade in services in the General Agreement on Trade in Services). An econometric analysis indicates that policies restricting trade in services (as captured in the OECD Services Trade Restrictiveness Index) are associated with a lower output of foreign affiliates not only in services industries but also in the manufacturing sector. Moreover, services trade restrictions also impact the choice of firms when it comes to engaging in exports or in foreign direct investment to serve foreign markets. Overall, the results in this paper demonstrate the intertwined nature of manufacturing and services activities in global value chains.

Suggested Citation

  • Andrea Andrenelli & Charles Cadestin & Koen De Backer & Sébastien Miroudot & Davide Rigo & Ming Ye, 2018. "Multinational production and trade in services," OECD Trade Policy Papers 212, OECD Publishing.
    • Handle: RePEc:oec:traaab:212-en
    DOI: 10.1787/16ec6b55-en
    as

    Download full text from publisher

    File URL: https://doi.org/10.1787/16ec6b55-en
    Download Restriction: no
    File URL: https://libkey.io/10.1787/16ec6b55-en?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anirudh Shingal, 2021. "COVID-19 and Services Trade in ASEAN+6: Implications and Estimates from Structural Gravity," Working Papers DP-2021-02, Economic Research Institute for ASEAN and East Asia (ERIA).
    2. Sébastien Miroudot & Davide Rigo, 2022. "Multinational production and investment provisions in preferential trade agreements [Intra-industry foreign direct investment]," Journal of Economic Geography, Oxford University Press, vol. 22(6), pages 1275-1308.
    3. Kohler, Wilhelm & Smolka, Marcel, 2021. "Productivity and firm boundaries," European Economic Review, Elsevier, vol. 135(C).
    4. Zhu, Kunfu & Guo, Xuefan & Zhang, Zengkai, 2022. "Reevaluation of the carbon emissions embodied in global value chains based on an inter-country input-output model with multinational enterprises," Applied Energy, Elsevier, vol. 307(C).
    5. Anirudh Shingal, 2022. "COVID‐19, services trade and greenfield investment in ASEAN+6," The World Economy, Wiley Blackwell, vol. 45(10), pages 3146-3168, October.
    6. Andre Jungmittag, 2019. "Service trade restrictiveness and internationalisation of retail trade," International Economics and Economic Policy, Springer, vol. 16(2), pages 293-333, April.
    7. Borchert,Ingo & Di Ubaldo,Mattia, 2021. "Deep Services Trade Agreements and their Effect on Trade and Value Added," Policy Research Working Paper Series 9608, The World Bank.
    8. Van Der Marel,Erik Leendert & Shepherd,Ben, 2020. "Trade Facilitation in Services : Concepts and Empirical Importance," Policy Research Working Paper Series 9234, The World Bank.
    9. Anirudh Shingal, 2020. "Quantifying Barriers to Movement of Service Suppliers and Examining their Effects: Implications for COVID-19," Indian Council for Research on International Economic Relations (ICRIER) Working Paper 399, Indian Council for Research on International Economic Relations (ICRIER), New Delhi, India.
    10. Charles Cadestin & Koen De Backer & Sébastien Miroudot & Laurent Moussiegt & Davide Rigo & Ming Ye, 2019. "Multinational enterprises in domestic value chains," OECD Science, Technology and Industry Policy Papers 63, OECD Publishing.
    11. Echandi,Roberto & Sauve,Pierre, 2020. "Investment Facilitation and Mode 3 Trade in Services : Are Current Discussions Addressing the Key Issues ?," Policy Research Working Paper Series 9229, The World Bank.
    12. Roy, Martin, 2019. "Elevating services: Services trade policy, WTO commitments, and their role in economic development and trade integration," WTO Staff Working Papers ERSD-2019-01, World Trade Organization (WTO), Economic Research and Statistics Division.
    13. Erik van der Marel, 2020. "Sources of Comparative Advantage in Data-Related Services," RSCAS Working Papers 2020/30, European University Institute.
    14. Xiying Zhang & Yihuan Wang, 2022. "Research on the Influence of Digital Technology and Policy Restrictions on the Development of Digital Service Trade," Sustainability, MDPI, vol. 14(16), pages 1-16, August.
    15. Erik Marel & Martina Francesca Ferracane, 2021. "Do data policy restrictions inhibit trade in services?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 157(4), pages 727-776, November.
    16. Anirudh Shingal, 2023. "Mode 4 restrictiveness and services trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 159(3), pages 757-786, August.

    More about this item

    Keywords

    FATS; global input-output; global value chains; mode 3; Multinational enterprises; multinational production; trade in services; trade in value-added;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F68 - International Economics - - Economic Impacts of Globalization - - - Policy
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oec:traaab:212-en. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/tdoecfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.