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Export Performance of South and East Asia in Modern Services

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  • Shahbaz Nasir
  • Kaliappa Kalirajan

Abstract

Advancements in information and communications technologies (ICTs) have increased the possibilities for trade in modern services and many Asian emerging and developed economies are participating increasingly in these new trade activities. This paper examines the export performance of these emerging and developed Asian economies in selected modern services: computer and information services, business and professional services, and telecommunications services, using a stochastic frontier gravity type model. Estimation results show that performance of emerging economies in South Asia and the ASEAN region, in terms of realization of export potential, is considerably lower than that of the developed world in North America and Europe. The results also show that the number of graduates and the ICT infrastructure in emerging countries are amongst key factors for modern services exports. These findings suggest that emerging economies need to remove ‘behind the border' constraints and adopt advanced technologies in order to catch up with the high performing developed countries.

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File URL: https://crawford.anu.edu.au/acde/asarc/pdf/papers/2013/WP2013_07.pdf
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Bibliographic Info

Paper provided by The Australian National University, Australia South Asia Research Centre in its series ASARC Working Papers with number 2013-07.

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Length: 19
Date of creation: 2013
Date of revision:
Handle: RePEc:pas:asarcc:2013-07

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Keywords: Services exports; stochastic frontier gravity model; Asia; North America; and Europe.;

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  1. Barro, Robert J. & Lee, Jong Wha, 2013. "A new data set of educational attainment in the world, 1950–2010," Journal of Development Economics, Elsevier, vol. 104(C), pages 184-198.
  2. Alan Deardorff, 1998. "Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?," NBER Chapters, in: The Regionalization of the World Economy, pages 7-32 National Bureau of Economic Research, Inc.
  3. Ghani, Ejaz & Anand, Rahul, 2009. "How will changes in globalization impact growth in south Asia ?," Policy Research Working Paper Series 5079, The World Bank.
  4. Feenstra, Robert C, 2002. "Border Effects and the Gravity Equation: Consistent Methods for Estimation," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(5), pages 491-506, December.
  5. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-44, June.
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