The Impact of International Trade in Services on Economic Growth in Developing Countries: A Panel Data Analysis

This study examines the relationship between Gross Domestic Product (GDP) and the import and export of services using data from the period 1991-2022 for selected developing countries, namely India, Indonesia, Brazil, Mexico, Kenya, Turkey, and Egypt. The motivation for the research is to understand the economic growth dynamics of developing countries and to determine the role of the service sector in this growth. The aim of the study is to identify the impact of service imports and exports on GDP and to contribute to the literature in this area. The analysis was conducted using the panel data method, with cross-sectional dependency tests, slope homogeneity tests, and unit root tests performed. Based on the results of these tests, cointegration tests, and the Common Correlated Effects Mean Group (CCEMG) estimator were used. It was found that the variables in the model differ across countries. The findings of the research indicate that service exports do not have a significant relationship with GDP for the selected countries. However, the impact of service imports on GDP varies across countries. It was found that, except for Egypt and Kenya, service imports have a positive and significant relationship with GDP for all other countries. These results are generally consistent with the existing literature for developing countries, suggesting that while service imports support economic growth, service exports do not have the expected level of impact. The findings of the study aim to provide valuable insights for shaping the economic policies of developing countries and contribute to the literature.The findings of the research indicate that service exports do not have a significant relationship with GDP for the selected countries. However, the impact of service imports on GDP varies across countries. It was found that, except for Egypt and Kenya, service imports have a positive and significant relationship with GDP for all other countries. These results are generally consistent with the existing literature for developing countries, suggesting that while service imports support economic growth, service exports do not have the expected level of impact. The findings of the study aim to provide valuable insights for shaping the economic policies of developing countries and contribute to the literature.