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Do institutions matter more for services ?

Author

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  • Amin, Mohammad
  • Mattoo, Aaditya

Abstract

Recent empirical research has focused on the role ofinstitutions in overall economic performance. This paper examines the impact of institutions on the relative performance of the service sector. Through cross-country level and growth regressions it establishes the following stylized fact: countries with better institutions have relatively larger and more dynamic service sectors. It suggests that regulatory and contract enforcing institutions play a key role in the development of service sectors because these sectors enter into a more complex web of transactions with the rest of the economy and are more prone to market failure due to asymmetric information.

Suggested Citation

  • Amin, Mohammad & Mattoo, Aaditya, 2006. "Do institutions matter more for services ?," Policy Research Working Paper Series 4032, The World Bank.
    • Handle: RePEc:wbk:wbrwps:4032
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    References listed on IDEAS

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    Cited by:

    1. Aaditya Mattoo & Arvind Subramanian, 2009. "Criss-Crossing Globalization: Uphill Flows of Skill-Intensive Goods and Foreign Direct Investment," Working Paper Series WP09-7, Peterson Institute for International Economics.
    2. Ghani, Ejaz, 2012. "Service with a Smile," World Bank - Economic Premise, The World Bank, issue 96, pages 1-6, November.
    3. Oleksandr Shnyrkov & Rita Zablotska & Oleksii Chugaiev, 2019. "The Impact Of Institutions On Services Exports Of Central And Eastern European Countries," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 5(5).
    4. Glawe, Linda & Wagner, Helmut, 2017. "The Deep Determinants at More Subtle Stages of Development: The Example of the Middle-Income Trap Phenomenon," CEAMeS Discussion Paper Series 11/2017, University of Hagen, Center for East Asia Macro-economic Studies (CEAMeS), revised 2017.
    5. Hoekman, Bernard & Mattoo, Aaditya, 2008. "Services trade and growth," Policy Research Working Paper Series 4461, The World Bank.
    6. Manghnani,Ruchita & Meyer,Birgit Elisabeth & Saez,Juan Sebastian & Van Der Marel,Erik Leendert, 2021. "Firm Performance, Participation in Global Value Chains and Service Inputs : Evidence from India," Policy Research Working Paper Series 9814, The World Bank.
    7. Arti Grover Goswami & Sebastián Sáez, 2014. "Trade in services competitiveness: An assessment methodology," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(01), pages 1-31.
    8. Maisya Farhati & Raquel Ortega-Argilés, 2018. "Growth of service sector in BRIIC economies," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 10(1), pages 40-52, April.

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