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Modern Services Export Performances among Emerging and Developed Asian Economies

Author

Listed:
  • Nasir, Shahbaz

    (Asian Development Bank)

  • Kalirajan, Kaliappa

    (Crawford School of Public Policy)

Abstract

Advancements in information and communications technologies (ICTs) have expanded the possibilities for trade in modern services and many Asian emerging and developed economies are increasingly participating in these new trade activities. This study examines the export performances of emerging and developed Asian economies in selected modern services—computer and information, business and professional, and telecommunications—using a stochastic frontier gravity model. Estimation results show that the performances of emerging economies in South Asia and the Association of Southeast Asian Nations (ASEAN), in terms of realization of export potential, are considerably weaker than those of developed economies in North America and Europe. The results also show that the number of graduates and the quality of ICT infrastructure in emerging countries are among the key factors in realizing services export potential. These findings suggest that emerging economies need to remove "behind-the-border" constraints and adopt advanced technologies in order to catch up with high-performing developed countries.

Suggested Citation

  • Nasir, Shahbaz & Kalirajan, Kaliappa, 2014. "Modern Services Export Performances among Emerging and Developed Asian Economies," Working Papers on Regional Economic Integration 143, Asian Development Bank.
    • Handle: RePEc:ris:adbrei:0143
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    References listed on IDEAS

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    1. Park, Cyn-Young & Majuca, Ruperto & Yap, Josef, 2010. "The 2008 Financial Crisis and Potential Output in Asia: Impact and Policy Implications," Working Papers on Regional Economic Integration 45, Asian Development Bank.
    2. Peter Egger, 2008. "On the Role of Distance for Bilateral Trade," The World Economy, Wiley Blackwell, vol. 31(5), pages 653-662, May.
    3. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    4. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-116, March.
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    Cited by:

    1. Maureen Were & Maureen Odongo, 2023. "Competitiveness and diversification of services exports in sub‐Saharan Africa," The World Economy, Wiley Blackwell, vol. 46(2), pages 363-381, February.
    2. Maureen Were & Maureen Odongo, 2019. "Competitiveness and diversification of service exports in sub-Saharan Africa: The case of the East African Community," WIDER Working Paper Series wp-2019-89, World Institute for Development Economic Research (UNU-WIDER).
    3. Khatiwada, Sameer & Flaminiano, John Paul, 2019. "Prospects for Decent Work in Services," ADBI Working Papers 940, Asian Development Bank Institute.

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    More about this item

    Keywords

    Service exports; stochastic frontier gravity model; Asia; North America; Europe;
    All these keywords.

    JEL classification:

    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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