Competitiveness and the Kaldor Paradox: The case of Spanish Service Sector
In the current wave of service globalisation, a new dynamic explaining international trade in services emerges. Some services are following similar trends to the ones initiated by manufacturing industries some decades ago. In this context, costs factors, the ones leading the major part of the current global sourcing in services, could gain importance in global services competition. Services could behave more similarly to goods and the Kaldor paradox may potentially be less remarkable that some years ago, in a context where the achievement of the EMU perform in the opposite way. As a particular empirical case study, empirical analysis of trade market shares in relation to effective real exchange rate is carried out for the Spanish case. Results shows that the Kaldor paradox continues having a strong importance in Spanish trade, although not all the service sectors have the same price/costs sensibility. Recent trends also present uneven results depending on the service sector, but in general there are not signs of decreasing the role of non-price/cost factors in international trade (in particular business services), although many services continue to be slightly more sensitive to relative prices than other industries.
|Date of creation:||Jun 2006|
|Date of revision:|
|Contact details of provider:|| Postal: Plaza de la Victoria, 2 C.P. 28802, Alcalá de Henares|
Phone: (00 34) 91 885 52 25
Fax: (00 34) 91 885 52 21
Web page: http://www.iaes.es
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fagerberg, Jan, 1996.
"Technology and Competitiveness,"
Oxford Review of Economic Policy,
Oxford University Press, vol. 12(3), pages 39-51, Autumn.
- Ravn, Morten O & Uhlig, Harald, 2001.
"On Adjusting the HP-Filter for the Frequency of Observations,"
CEPR Discussion Papers
2858, C.E.P.R. Discussion Papers.
- Morten O. Ravn & Harald Uhlig, 2001. "On Adjusting the HP-Filter for the Frequency of Observations," CESifo Working Paper Series 479, CESifo Group Munich.
- Uhlig, H.F.H.V.S. & Ravn, M., 1997. "On Adjusting the H-P Filter for the Frequency of Observations," Discussion Paper 1997-50, Tilburg University, Center for Economic Research.
- William Milberg & Ellen Houston, 2005. "The high road and the low road to international competitiveness: Extending the neo-Schumpeterian trade model beyond technology," International Review of Applied Economics, Taylor & Francis Journals, vol. 19(2), pages 137-162.
- L. Rubalcaba & D. Gago, 2001. "Relationships between Services and Competitiveness: The Case of Spanish Trade," The Service Industries Journal, Taylor & Francis Journals, vol. 21(1), pages 35-62, January.
When requesting a correction, please mention this item's handle: RePEc:uae:wpaper:0606. 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: (Laura Suarez)
If references are entirely missing, you can add them using this form.