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Does international specialization in producer services warrant sustainable growth?

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  • Seo Hwan-Joo
  • Lee Young Soo
  • Kim HanSung

Abstract

Does international specialization in producer services warrant sustainable growth? This paper seeks to answer the question regarding the relationship between trade specialization in producer services and productivity growth in Organization for Economic Cooperation and Development (OECD) countries using a difference generalized method of moments. Three indicators of trade specialization (export ratio, revealed comparative advantage, and trade specification index) are adopted as explanatory variables in productivity growth regressions for 12 OECD countries over 1987--2002. The results show both the positive and negative impact of international specialization on producer services on productivity growth; it is only when one country specializes in technology-intensive (or R&D-intensive) producer services that international specialization in producer services has a positive impact on productivity growth.

Suggested Citation

  • Seo Hwan-Joo & Lee Young Soo & Kim HanSung, 2009. "Does international specialization in producer services warrant sustainable growth?," The Service Industries Journal, Taylor & Francis Journals, vol. 31(8), pages 1279-1291, September.
    • Handle: RePEc:taf:servic:v:31:y:2009:i:8:p:1279-1291
    DOI: 10.1080/02642060903437527
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    References listed on IDEAS

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    1. Luis Rubalcaba & Henk Kox (ed.), 2007. "Business Services in European Economic Growth," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-22879-5.
    2. Bart van Ark, 2001. "The Renewal of the Old Economy: An International Comparative Perspective," OECD Science, Technology and Industry Working Papers 2001/5, OECD Publishing.
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