IDEAS home Printed from https://ideas.repec.org/a/bla/worlde/v46y2023i2p382-395.html
   My bibliography  Save this article

Services trade policy and industry performance in African economies

Author

Listed:
  • Matteo Fiorini
  • Bernard Hoekman
  • Dennis Quinn

Abstract

This paper assesses the potential impacts of services trade liberalisation for a sample of African countries. The focus is on the relationship between labour productivity of manufacturing sectors and two types of services trade‐related policies – restrictions on foreign direct investment (FDI) in services and restrictions on international payments for invisibles. The analysis takes into account differences across manufacturing sectors in the intensity of use of different services as inputs into production as well as difference in the quality of economic governance across countries. We find that services trade liberalisation may have substantial positive impacts on the performance of manufacturing sectors, and increase with services input intensity and the quality of governance.

Suggested Citation

  • Matteo Fiorini & Bernard Hoekman & Dennis Quinn, 2023. "Services trade policy and industry performance in African economies," The World Economy, Wiley Blackwell, vol. 46(2), pages 382-395, February.
    • Handle: RePEc:bla:worlde:v:46:y:2023:i:2:p:382-395
    DOI: 10.1111/twec.13361
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/twec.13361
    Download Restriction: no
    File URL: https://libkey.io/10.1111/twec.13361?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Arnold, Jens M. & Javorcik, Beata S. & Mattoo, Aaditya, 2011. "Does services liberalization benefit manufacturing firms?: Evidence from the Czech Republic," Journal of International Economics, Elsevier, vol. 85(1), pages 136-146, September.
    2. Beverelli, Cosimo & Fiorini, Matteo & Hoekman, Bernard, 2017. "Services trade policy and manufacturing productivity: The role of institutions," Journal of International Economics, Elsevier, vol. 104(C), pages 166-182.
    3. Bernard Hoekman & Ben Shepherd, 2017. "Services Productivity, Trade Policy and Manufacturing Exports," The World Economy, Wiley Blackwell, vol. 40(3), pages 499-516, March.
    4. Hoekman, Bernard & Shepherd, Ben, 2021. "Services Trade Policies and Economic Integration: New Evidence for Developing Countries," World Trade Review, Cambridge University Press, vol. 20(1), pages 115-134, February.
    5. Rajan, Raghuram G & Zingales, Luigi, 1998. "Financial Dependence and Growth," American Economic Review, American Economic Association, vol. 88(3), pages 559-586, June.
    6. Ingo Borchert & Batshur Gootiiz & Aaditya Mattoo, 2014. "Policy Barriers to International Trade in Services: Evidence from a New Database," The World Bank Economic Review, World Bank, vol. 28(1), pages 162-188.
    7. Quinn, Dennis, 1997. "The Correlates of Change in International Financial Regulation," American Political Science Review, Cambridge University Press, vol. 91(3), pages 531-551, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Debrah, Yaw A. & Olabode, Oluwaseun E. & Olan, Femi & Nyuur, Richard B., 2024. "The African Continental Free Trade Area (AfCFTA): Taking stock and looking ahead for international business research," Journal of International Management, Elsevier, vol. 30(2).
    2. Benjamin Nitsche & Henry Kofi Mensah & Frank Straube & Vianney Barigye, 2024. "Leveraging the Potential of the African Continental Free Trade Area: Logistics Challenges and Development Paths for Future Value Chains in Africa," Logistics, MDPI, vol. 8(1), pages 1-16, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Beverelli, Cosimo & Fiorini, Matteo & Hoekman, Bernard, 2017. "Services trade policy and manufacturing productivity: The role of institutions," Journal of International Economics, Elsevier, vol. 104(C), pages 166-182.
    2. Hoekman, Bernard & Shepherd, Ben, 2021. "Services Trade Policies and Economic Integration: New Evidence for Developing Countries," World Trade Review, Cambridge University Press, vol. 20(1), pages 115-134, February.
    3. Bernard Hoekman & Dominique Njinkeu, 2017. "Integrating Africa: Some Trade Policy Research Priorities and Challenges," RSCAS Working Papers 2017/43, European University Institute.
    4. Fiorini, Matteo & Hoekman, Bernard, 2018. "Services trade policy and sustainable development," World Development, Elsevier, vol. 112(C), pages 1-12.
    5. Matteo Fiorini & Bernard Hoekman & Clément Malgouyres, 2018. "Services policy reform and manufacturing employment: Evidence from transition economies," The World Economy, Wiley Blackwell, vol. 41(9), pages 2320-2348, September.
    6. Roy, Martin, 2019. "Elevating services: Services trade policy, WTO commitments, and their role in economic development and trade integration," WTO Staff Working Papers ERSD-2019-01, World Trade Organization (WTO), Economic Research and Statistics Division.
    7. Matteo Fiorini & Bernard Hoekman, 2017. "Economic Governance, Regulation and Services Trade Liberalization," RSCAS Working Papers 2017/27, European University Institute.
    8. Fiorini, Matteo; Lebrand, Mathilde, 2016. "The Political Economy of Services Trade Agreements," Economics Working Papers ECO2016/05, European University Institute.
    9. Matteo Fiorini & Bernard Hoekman, 2020. "EU services trade liberalization and economic regulation: Complements or substitutes?," The Review of International Organizations, Springer, vol. 15(1), pages 247-270, January.
    10. Bai, Zhuoran & Meng, Shuang & Miao, Zhuang & Zhang, Yan, 2019. "Services Liberalization and Export Diversity: Theory and Evidence from Chinese Firms," MPRA Paper 95862, University Library of Munich, Germany.
    11. Dazhong Cheng & Zhiguo Xiao, 2021. "Producer Services and Productivity: A Global Value Chain Perspective," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 67(2), pages 418-444, June.
    12. Bernard Hoekman, 2020. "Trade Wars and the World Trade Organization: Causes, Consequences, and Change," Asian Economic Policy Review, Japan Center for Economic Research, vol. 15(1), pages 98-114, January.
    13. Wenxi Lu, 2018. "Services Liberalisation, Export Similarity and Trade in Services," School of Economics and Public Policy Working Papers 2018-04, University of Adelaide, School of Economics and Public Policy.
    14. Hui Fang & Qixin Huo & Kaouakib Hatim, 2023. "Can Digital Services Trade Liberalization Improve the Quality of Green Innovation of Enterprises? Evidence from China," Sustainability, MDPI, vol. 15(8), pages 1-22, April.
    15. Bernard Hoekman, 2017. "Trade in services: Opening markets to create opportunities," WIDER Working Paper Series wp-2017-31, World Institute for Development Economic Research (UNU-WIDER).
    16. 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).
    17. Andre Jungmittag & Robert Marschinski, 2023. "Service trade restrictiveness and foreign direct investment—Evidence from greenfield FDI in business services," The World Economy, Wiley Blackwell, vol. 46(6), pages 1711-1758, June.
    18. Bernard Hoekman, 2017. "Trade in services: Opening markets to create opportunities," WIDER Working Paper Series 031, World Institute for Development Economic Research (UNU-WIDER).
    19. Lingduo Jiang & Shuangshuang Liu & Guofeng Zhang, 2022. "Digital trade barriers and export performance: Evidence from China," Southern Economic Journal, John Wiley & Sons, vol. 88(4), pages 1401-1430, April.
    20. Hoekman,Bernard M., 2020. "Facilitating Trade in Services," Policy Research Working Paper Series 9228, The World Bank.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:worlde:v:46:y:2023:i:2:p:382-395. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0378-5920 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.