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Services liberalization and GVC participation : new evidence for heterogeneous effects by income level and provisions

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  • Lee,Woori

Abstract

Participation in global value chains is a key element in the industrialization strategies of many developing nations. This paper investigates the role of services liberalization in promoting participation in global value chains. Using the gravity framework, it examines the impact of services trade agreements on gross trade and global value chain trade (backward and forward participation) in goods. It finds that services trade agreements promote both, but especially global value chain trade, although the effects are heterogeneous: the impact is greater for developing nation exporters. Moreover, services agreements that allow the export of services without local presence (non-establishment rights) are particularly important in fostering participation in global value chains.

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  • Lee,Woori, 2018. "Services liberalization and GVC participation : new evidence for heterogeneous effects by income level and provisions," Policy Research Working Paper Series 8475, The World Bank.
    • Handle: RePEc:wbk:wbrwps:8475
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    Cited by:

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    2. Su, Xiaoyan & Anwar, Sajid & Zhou, Ying & Tang, Xuan, 2020. "Services trade restrictiveness and manufacturing export sophistication," The North American Journal of Economics and Finance, Elsevier, vol. 51(C).
    3. Sébastien Miroudot & Davide Rigo, 2019. "Preferential Trade Agreements and Multinational Production," RSCAS Working Papers 2019/14, European University Institute.
    4. Sineenat Sermcheep, 2019. "Services Export and Economic Growth in ASEAN Countries," Journal of Asian Economic Integration, , vol. 1(2), pages 163-182, September.
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    6. Carmen Díaz-Mora & Rosario Gandoy & Belén González-Díaz, 2018. "Looking into global value chains: influence of foreign services on export performance," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(4), pages 785-814, November.

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    More about this item

    Keywords

    International Trade and Trade Rules; Common Carriers Industry; Food&Beverage Industry; Pulp&Paper Industry; General Manufacturing; Construction Industry; Business Cycles and Stabilization Policies; Plastics&Rubber Industry; Textiles; Apparel&Leather Industry; Trade and Services; Industrial and Consumer Services and Products; Transport and Trade Logistics;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

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