IDEAS home Printed from
   My bibliography  Save this book chapter

International Competition in Services

In: The United States in the World Economy


  • Rachel McCulloch
  • Maurice R. Greenberg
  • Lionel H. Olmer


Production of services now dominates economic activity in the United States and most other nations. It is thus natural to find increasing attention on the part of U.S. policymakers to international competition in service activities. Yielding to strong pressure from the United States, members of the General Agreement on Tariffs and Trade (GATT) agreed in September 1986 to include services in the new "Uruguay Round" of multilateral trade negotiations. But there remains widespread skepticism regarding the prospects for these negotiations. This paper surveys the main issues and evidence relating to U.S. international competition in services. It reviews the forces that have catapulted services to the top of the agenda for the new GATT round; the conceptual issues raised by international competition in services; the growing importance of services in U.S. production and in international transactions; the relationship of services growth to "deindustrialization" of the U.S. economy; the nature and motivation of barriers to international competition in services and their relationship to nontariff distortions of merchandise trade; and the choices awaiting U.S. officials in forthcoming bilateral and multilateral negotiations.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Rachel McCulloch & Maurice R. Greenberg & Lionel H. Olmer, 1988. "International Competition in Services," NBER Chapters,in: The United States in the World Economy, pages 367-422 National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberch:6216

    Download full text from publisher

    File URL:
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    1. André Sapir, 1985. "North-South issues in trade in services," ULB Institutional Repository 2013/8264, ULB -- Universite Libre de Bruxelles.
    2. Robert E. Lipsey & Irving B. Kravis, 1985. "The Competitive Position of U.S. Manufacturing Firms," NBER Working Papers 1557, National Bureau of Economic Research, Inc.
    3. Irving B. Kravis, 1983. "Services in the Domestic Economy and in World Transactions," NBER Working Papers 1124, National Bureau of Economic Research, Inc.
    4. Alan B. Krueger & Lawrence H. Summers, 1986. "Reflections on the Inter-Industry Wage Structure," NBER Working Papers 1968, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Lawrence H. Goulder & Barry Eichengreen, 1989. "Savings Promotion, Investment Promotion, and International Competitiveness," NBER Chapters,in: Trade Policies for International Competitiveness, pages 5-52 National Bureau of Economic Research, Inc.
    2. Lawrence H. Goulder & Barry Eichengreen, 1992. "Trade Liberalization in General Equilibrium: Intertemporal and Inter-industry Effects," Canadian Journal of Economics, Canadian Economics Association, vol. 25(2), pages 253-280, May.
    3. John D. Montgomery, 1991. "Market segmentation and 1992: toward a theory of trade in financial services," International Finance Discussion Papers 394, Board of Governors of the Federal Reserve System (U.S.).

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberch:6216. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.