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The impact of SFTAs on Domestic Value-Added in Services: Evidence from 78 Countries

Author

Listed:
  • Zhao Jinlong

    (Shanghai University)

  • Jiang Hao

    (Shanghai University)

  • Lu Boyi

    (Shanghai University)

Abstract

This study delves into the impact of Service Free Trade Agreements (SFTAs) on the domestic value-added (DVA) exports in services among member countries. The research demonstrates that SFTAs positively influence the DVA exports in services, enhancing the members' positions in Global Value Chains (GVCs) and improving the competitiveness of DVA. The effects are more stable and consistent in North-North SFTAs, particularly as GVCs deepen. The trade promotion effects of SFTAs also exhibit industry-level heterogeneity. Moreover, the results remain robust by introducing the proportion of intermediate trade, alternative GDP, and dynamic distance variables.

Suggested Citation

  • Zhao Jinlong & Jiang Hao & Lu Boyi, 2026. "The impact of SFTAs on Domestic Value-Added in Services: Evidence from 78 Countries," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 41(3), pages 569-599, September.
    • Handle: RePEc:ris:integr:023565
    DOI: 10.11130/jei.2026009
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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • L80 - Industrial Organization - - Industry Studies: Services - - - General

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