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Exploring Comparative Advantages in Services Trade: Insights from Thirteen Emerging Developing Economies

In: Business and Sustainable Development in a Globalized and Digitalized Era

Author

Listed:
  • Farhat Azad

    (University of Kashmir, Department of Commerce, Faculty of Commerce)

  • Mohammad Shafi Sofi

    (Islamic University of Science and Technology, Department of Economics, School of Business Studies)

Abstract

The exchange of goods and services across international borders has been essential in driving economic growth and development. This investigation calculates the revealed symmetric comparative advantage (RSCA) of five key services from 2000 to 2023 across thirteen fast-emerging economies (India, Brazil, China, Indonesia, Mexico, Russia, Turkiye, Philippines, Malaysia, Egypt, Bangladesh, South Africa and Kenya), ranked as per GDP growth statistics for the year 2021in the World Population Review.The results indicate that India, China, and the Philippines possess significant comparative advantages in the fields of Telecommunications, Computer, and Information services. China,Russia, Egypt, Kenya, and Turkey exhibit distinct strengths in transport services. Indonesia, Turkey, Malaysia, Egypt, South Africa, and Mexico exhibit a comparative advantage in the travel services sector. Mexico exhibits a notable comparative advantage in the areas of insurance and pension services. Malaysia and South Africa possess distinct strengths in personal, cultural, and recreational services. The findings indicate that every nation focuses on exporting services where it holds a comparative advantage.

Suggested Citation

  • Farhat Azad & Mohammad Shafi Sofi, 2026. "Exploring Comparative Advantages in Services Trade: Insights from Thirteen Emerging Developing Economies," Springer Proceedings in Business and Economics, in: Zafar U. Ahmed & Nhat Tan Pham (ed.), Business and Sustainable Development in a Globalized and Digitalized Era, pages 277-301, Springer.
    • Handle: RePEc:spr:prbchp:978-3-032-29346-6_14
    DOI: 10.1007/978-3-032-29346-6_14
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