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The Competitiveness of European Services

Author

Listed:
  • Luis Rubalcaba
  • Gisela di Meglio
  • Stefano Visintin
  • Andrés Maroto
  • Jorge Gallego

Abstract

The emergence of service offshoring places competitiveness at the centre of the discussion on international trade. The role of cost related factors driving trade performances is debated. However, although services trade becomes more dynamic, service competitiveness factors remain a field largely unexplored by applied economics. This paper addresses the role of cost-related factors explaining service competitiveness. It empirically tests trade performance of 15 European countries in 8 service markets in order to observe the role of cost-factors, country effects and industry specific patterns. A model based on regression analysis and panel data is suggested to test the influence of cost-determinants and their elasticities. REsults show great heterogeneity among service activities and suggest the importance of non-cost related factors within European Union countries.

Suggested Citation

  • Luis Rubalcaba & Gisela di Meglio & Stefano Visintin & Andrés Maroto & Jorge Gallego, 2008. "The Competitiveness of European Services," Working Papers 01/08, Instituto Universitario de Análisis Económico y Social.
    • Handle: RePEc:uae:wpaper:0108
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    File URL: http://www3.uah.es/iaes/publicaciones/DT_01_08.pdf
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    References listed on IDEAS

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    1. Carlin, Wendy & Glyn, Andrew & Van Reenen, John, 2001. "Export Market Performance of OECD Countries: An Empirical Examination of the Role of Cost Competitiveness," Economic Journal, Royal Economic Society, vol. 111(468), pages 128-162, January.
    2. Valerie Cerra & Jarkko Soikkeli & Sweta C. Saxena, 2003. "How Competitive is Irish Manufacturing?," The Economic and Social Review, Economic and Social Studies, vol. 34(2), pages 173-193.
    3. Fagerberg, Jan, 1988. "International Competitiveness," Economic Journal, Royal Economic Society, vol. 98(391), pages 355-374, June.
    4. Angela Cheptea & Guillaume Gaulier & Soledad Zignago, 2004. "The World Market: Market Shares and Export Performances," La Lettre du CEPII, CEPII research center, issue 231.
    5. Luis Rubalcaba, 2007. "The New Service Economy," Books, Edward Elgar Publishing, number 3975.
    6. Mr. Leslie Lipschitz & Mr. Donogh McDonald, 1991. "Real Exchange Rates and Competitiveness: A Clarification of Concepts, and Some Measurements for Europe," IMF Working Papers 1991/025, International Monetary Fund.
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    Cited by:

    1. Daniel Schwanen, 2014. "Tradable Services: Canada’s Overlooked Success Story," e-briefs 170, C.D. Howe Institute.

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