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Trade and jobs in Europe: The role of mode 5 service exports

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  • José M. RUEDA‐CANTUCHE
  • Lucian CERNAT
  • Nuno SOUSA

Abstract

Over the past two decades, EU employment supported by extra‐EU exports of goods and services has increased markedly, with a shift towards jobs supported by services exported as part of manufactured goods. The authors seek further insight into this trend through the full decomposition of trade flows using a multi‐regional input–output model and the World Input–Output Database for 40 countries and 35 industries over the period 1995–2011. Their findings call for reflection by policy‐makers regarding the four traditional modes of service supply under the General Agreement on Trade in Services with a view to adequately capturing this new reality in global trade.

Suggested Citation

  • José M. RUEDA‐CANTUCHE & Lucian CERNAT & Nuno SOUSA, 2019. "Trade and jobs in Europe: The role of mode 5 service exports," International Labour Review, International Labour Organization, vol. 158(1), pages 115-136, March.
    • Handle: RePEc:bla:intlab:v:158:y:2019:i:1:p:115-136
    DOI: 10.1111/ilr.12103
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    References listed on IDEAS

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    1. José Manuel Rueda-Cantuche & Nuno Sousa & Valeria Andreoni & Iñaki Arto, 2013. "The Single Market as an Engine for Employment through External Trade," Journal of Common Market Studies, Wiley Blackwell, vol. 51(5), pages 931-947, September.
    2. Rueda-Cantuche , José M. & Sousa, Nuno, 2016. "Eu Exports To The World: Overview Of Effects On Employment And Income," DG TRADE Chief Economist Notes 2016-1, Directorate General for Trade, European Commission.
    3. Magnus Lodefalk, 2014. "The role of services for manufacturing firm exports," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(1), pages 59-82, February.
    4. Sébastien Miroudot & Charles Cadestin, 2017. "Services In Global Value Chains: From Inputs to Value-Creating Activities," OECD Trade Policy Papers 197, OECD Publishing.
    5. Iñaki Arto & José Manuel Rueda-Cantuche & Antonio F. Amores & Erik Dietzenbacher & Nuno Sousa & Letizia Montinari & Anil Markandya, 2015. "EU Exports to the World: Effects on Employment and Income," JRC Research Reports JRC93237, Joint Research Centre.
    6. Sébastien Miroudot & Charles Cadestin, 2017. "Services in Global Value Chains: Trade patterns and gains from specialisation," OECD Trade Policy Papers 208, OECD Publishing.
    7. Magdeleine, Joscelyn & Maurer, Andreas, 2008. "Measuring GATS mode 4 trade flows," WTO Staff Working Papers ERSD-2008-05, World Trade Organization (WTO), Economic Research and Statistics Division.
    8. Hildegunn Kyvik Nordås & Yunhee Kim, 2013. "The Role of Services for Competitiveness in Manufacturing," OECD Trade Policy Papers 148, OECD Publishing.
    9. Rueda-Cantuche, José & Kerner, Riina & Cernat, Lucian & Ritola, Veijo, 2016. "Trade in services by GATS modes of supply: Statistical concepts and first EU estimates," DG TRADE Chief Economist Notes 2016-3, Directorate General for Trade, European Commission.
    10. Cernat, Lucian & Kutlina-Dimitrova, Zornitsa, 2014. "Thinking in a box: A ‘mode 5’ approach to service trade," DG TRADE Chief Economist Notes 2014-1, Directorate General for Trade, European Commission.
    11. Koen De Backer & Isabelle Desnoyers-James & Laurent Moussiegt, 2015. "'Manufacturing or Services - That is (not) the Question': The Role of Manufacturing and Services in OECD Economies," OECD Science, Technology and Industry Policy Papers 19, OECD Publishing.
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    Cited by:

    1. João Amador & Sónia Cabral & Birgitte Ringstad, 2018. "A portrait of Portuguese international traders of non-tourism services," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.
    2. Sleuwaegen, Leo & Smith, Peter M., 2021. "Service characteristics and the choice between exports and FDI: Evidence from Belgian firms," International Economics, Elsevier, vol. 168(C), pages 115-131.
    3. Daniel CHIQUIAR & Martín TOBAL & Renato YSLAS, 2019. "Measuring and understanding trade in service tasks," International Labour Review, International Labour Organization, vol. 158(1), pages 169-190, March.
    4. Stefan KÜHN & Christian VIEGELAHN, 2019. "Foreign trade barriers and jobs in global supply chains," International Labour Review, International Labour Organization, vol. 158(1), pages 137-167, March.

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