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Services linkages and the value added content of trade

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  • Francois, Joseph
  • Manchin, Miriam
  • Tomberger, Patrick

Abstract

Services trade constitute roughly one-third of trade on a value added basis, and much of this is concentrated in margin services (transport, logistics) linked to trade in goods. However, producer services are also part of the value added contained in traded goods. This is especially true in high income countries, where services account for roughly 70 percent of value added. Working with data (a set of global social accounting matrices spanning intermittent years from 1992 to 2007) this paper examines the services embodied in trade on a value added basis. This includes not only the direct and indirect contribution of services to value added contained in a given country’s exports, but also the extent to which third-country value added in services, through intermediate linkages of imported goods and services, are also embodied in production and trade. This exercise serves to highlight not only the importance of non-tradables in trade, but also by extension the importance that productivity, foreign affiliates sales, and trade and investment in services may hold for interdependence and cross-border linkages.

Suggested Citation

  • Francois, Joseph & Manchin, Miriam & Tomberger, Patrick, 2013. "Services linkages and the value added content of trade," Policy Research Working Paper Series 6432, The World Bank.
  • Handle: RePEc:wbk:wbrwps:6432
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    References listed on IDEAS

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    Cited by:

    1. João Amador & Sónia Cabral, 2017. "Networks of Value-added Trade," The World Economy, Wiley Blackwell, vol. 40(7), pages 1291-1313, July.
    2. Elisabeth Christen, 2017. "Time Zones Matter: The Impact of Distance and Time Zones on Services Trade," The World Economy, Wiley Blackwell, vol. 40(3), pages 612-631, March.
    3. Cali,Massimiliano & Francois,Joseph & Hollweg,Claire Honore & Manchin,Miriam & Oberdabernig,Doris Anita & Rojas Romagosa,Hugo Alexander & Rubinova,Stela & Tomberger,Patrick, 2016. "The labor content of exports database," Policy Research Working Paper Series 7615, The World Bank.
    4. Claire H. Hollweg, 2016. "From Evidence to Policy Supporting Nepal’s Trade Integration Strategy," World Bank Other Operational Studies 24932, The World Bank.
    5. Serafica, Ramonette B., 2016. "Why Manufacturing Resurgence Will Mean More Services, Not Less," Discussion Papers DP 2016-46, Philippine Institute for Development Studies.
    6. Christen, Elisabeth & Francois, Joseph & Hoekman, Bernard, 2012. "CGE modeling of market access in services," Policy Research Working Paper Series 6106, The World Bank.
    7. Morikawa, Masayuki, 2016. "Factoryless goods producers in Japan," Japan and the World Economy, Elsevier, vol. 40(C), pages 9-15.
    8. repec:bla:worlde:v:40:y:2017:i:3:p:532-543 is not listed on IDEAS
    9. Sebastián Sáez & Daria Taglioni & Erik van der Marel & Claire H. Hollweg & Veronika Zavacka, 2014. "Valuing Services in Trade : A Toolkit for Competitiveness Diagnostics," World Bank Publications, The World Bank, number 21285, April.
    10. Massimiliano Calì & Claire Hollweg, 2015. "The Labor Content of Exports in South Africa and Botswana," World Bank Other Operational Studies 23828, The World Bank.
    11. Peter H. Egger & Joseph Francois & Douglas R. Nelson, 2017. "The Role of Goods-Trade Networks for Services-Trade Volume," The World Economy, Wiley Blackwell, vol. 40(3), pages 532-543, March.
    12. World Bank Group, 2016. "Competitiveness of the Kyrgyz Economy in the Wake of Accession to the Eurasian Customs Union," World Bank Other Operational Studies 24252, The World Bank.
    13. Thomas Farole, 2016. "Factory Southern Africa?," World Bank Other Operational Studies 23787, The World Bank.
    14. Tomberger, Patrick, 2016. "Labour Income and Employment embodied in Internationally Fragmented Production Chains," Papers 1114, World Trade Institute.
    15. KIYOTA Kozo & OIKAWA Keita & YOSHIOKA Katsuhiro, 2016. "Global Value Chain and the Competitiveness of Asian Countries," Discussion papers 16080, Research Institute of Economy, Trade and Industry (RIETI).
    16. KONISHI Yoko, 2017. "Global Service Value Chain in Japan: Inbound tourism cases," Policy Discussion Papers 17011, Research Institute of Economy, Trade and Industry (RIETI).
    17. Christen, Elisabeth & Francois, Joseph & Hoekman, Bernard, 2013. "Computable General Equilibrium Modeling of Market Access in Services," Handbook of Computable General Equilibrium Modeling, Elsevier.
    18. repec:gta:jnlgea:v:2:y:2017:i:2:p:1-42 is not listed on IDEAS
    19. Woori Lee, 2017. "Services liberalization and GVC participation: New evidence for heterogeneous effects by income level and provisions," CTEI Working Papers series 08-2017, Centre for Trade and Economic Integration, The Graduate Institute.
    20. repec:wsi:jicepx:v:05:y:2014:i:01:n:s1793993314400018 is not listed on IDEAS
    21. Nguyen, Huong, 2016. "Does Proximity to Foreign Invested Firms Stimulate Productivity Growth of Domestic Firms? Firm-level Evidence from Vietnam," Papers 1001, World Trade Institute.

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    Keywords

    Economic Theory&Research; Transport Economics Policy&Planning; Free Trade; Trade Policy; Markets and Market Access;

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