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Effect of Multilateral Trade Liberalization on Services Export Diversification

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  • Gnangnon, Sèna Kimm

Abstract

The present study is an extension of the work on the effect of multilateral trade liberalization (MTL) on export product diversification undertaken by Gnangnon (2019b). The analysis focuses on the effect of MTL on services export diversification. The analysis has revealed that MTL is associated with greater services export diversification in both developed and developing countries alike. This is particularly the case in countries with a high reliance on manufactured goods exports or those that enjoy greater export product diversification. Interestingly, MTL enhances services export diversification in countries that experience higher foreign direct investment inflows. Overall, through its positive effect on both export product diversification and services export diversification, greater cooperation among World Trade Organization (WTO) Members on trade matters could help revive economic growth, particularly in the current COVID-19 pandemic that has significantly plummeted it.

Suggested Citation

  • Gnangnon, Sèna Kimm, 2021. "Effect of Multilateral Trade Liberalization on Services Export Diversification," EconStor Preprints 229152, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:229152
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    More about this item

    Keywords

    Multilateral trade liberalization; Services export diversification; Export product diversification; Foreign direct investment inflows;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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