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Service Trade and Occupational Tasks: An Empirical Investigation

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  • Ariu, Andrea
  • Mion, Giordano

Abstract

Using micro data for Belgium we investigate the relationship between occupational tasks changes and the rise of service trade. We focus the analysis on the extensive margin and look at the heterogeneous proliferation of firms involved in exports and imports of services across sectors characterized by different tasks changes patterns. Occupational tasks changes display an extremely consistent relationship with participation to service trade across firm groups pointing to strong churning effects. The change in analytical (interactive and routine cognitive) tasks intensity has a positive (negative) impact across the board meaning that, in industries characterized by larger changes, firms have experienced both higher (lower) likelihood of entry and exit. The negative relationship between the change in interactive tasks and service exports participation underlines the special role that proximity between demand and supply plays for services. Interestingly, we find exactly the opposite result (a positive relationship) between the extensive margin of goods exports and interactive tasks. Moreover, our analysis suggests that the change in IT use per se does not strike as being a key underlying force behind the increase in the extensive margin of service exports.

Suggested Citation

  • Ariu, Andrea & Mion, Giordano, 2012. "Service Trade and Occupational Tasks: An Empirical Investigation," CEPR Discussion Papers 8761, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:8761
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    Cited by:

    1. Andrea Ariu & Holger Breinlich & Gregory Corcos & Giordano Mion, 2017. "The interconnections between services and goods trade at the firm-level," Working Paper Research 329, National Bank of Belgium.
    2. Andrea Ariu, 2016. "Services versus goods trade: a firm-level comparison," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(1), pages 19-41, February.
    3. Andrea ARIU, 2013. "Services versus Goods Trade: Are They the Same?," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2013015, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    4. Andrea Ariu & Elena Biewen & Sven Blank & Guillaume Gaulier & María Jesus González, & Philipp Meinen, & Daniel Mirza & Cesar Martín, & Patry Tello, 2017. "Firm heterogeneity and aggregate business services exports : Micro evidence from Belgium, France, Germany and Spain," Working Paper Research 328, National Bank of Belgium.
    5. Ariu, Andrea, 2012. "Services Versus Goods Trade: Are They The Same?," CEPR Discussion Papers 9036, C.E.P.R. Discussion Papers.

    More about this item

    Keywords

    extensive margin; occupational tasks; technological change; trade in services;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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