IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v112y2018icp1-12.html
   My bibliography  Save this article

Services trade policy and sustainable development

Author

Listed:
  • Fiorini, Matteo
  • Hoekman, Bernard

Abstract

The realization of many of the sustainable development goals (SDGs) depends on bolstering the performance of services sectors and improving access to specific services in developing countries. We show that when the level of economic development or the quality of institutions is sufficiently high, openness to services trade and investment is positively related to access to financial, ICT and transport services – three activities that are inputs into several SDGs. An implication is that facilitating trade and investment in services may help realize SDGs that depend on the performance of services sectors. In the absence of comparable cross-country panel data on services trade policies, country-specific analyses are needed to better understand the specific channels through which services trade policies impact on SDGs.

Suggested Citation

  • Fiorini, Matteo & Hoekman, Bernard, 2018. "Services trade policy and sustainable development," World Development, Elsevier, vol. 112(C), pages 1-12.
    • Handle: RePEc:eee:wdevel:v:112:y:2018:i:c:p:1-12
    DOI: 10.1016/j.worlddev.2018.07.015
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X18302444
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.worlddev.2018.07.015?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
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Chauvet, Lisa & Jacolin, Luc, 2017. "Financial Inclusion, Bank Concentration, and Firm Performance," World Development, Elsevier, vol. 97(C), pages 1-13.
    2. L. Rachel Ngai & Barbara Petrongolo, 2017. "Gender Gaps and the Rise of the Service Economy," American Economic Journal: Macroeconomics, American Economic Association, vol. 9(4), pages 1-44, October.
    3. 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.
    4. 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.
    5. D’Amelio, Matilde & Garrone, Paola & Piscitello, Lucia, 2016. "Can Multinational Enterprises Light up Developing Countries?," World Development, Elsevier, vol. 88(C), pages 12-32.
    6. Maria Bas, 2014. "Does services liberalization affect manufacturing firms’ export performance? Evidence from India," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01297201, HAL.
    7. Hildegunn Kyvik Nordås & Dorothée Rouzet, 2015. "The Impact of Services Trade Restrictiveness on Trade Flows: First Estimates," OECD Trade Policy Papers 178, OECD Publishing.
    8. Bernard Hoekman & Ben Shepherd, 2017. "Services Productivity, Trade Policy and Manufacturing Exports," The World Economy, Wiley Blackwell, vol. 40(3), pages 499-516, March.
    9. Joachim Wagner, 2016. "International Trade and Firm Performance: A Survey of Empirical Studies since 2006," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 2, pages 43-87, World Scientific Publishing Co. Pte. Ltd..
    10. Breinlich, Holger & Criscuolo, Chiara, 2011. "International trade in services: A portrait of importers and exporters," Journal of International Economics, Elsevier, vol. 84(2), pages 188-206, July.
    11. Renaud Bourlès & Gilbert Cette & Jimmy Lopez & Jacques Mairesse & Giuseppe Nicoletti, 2013. "Do Product Market Regulations In Upstream Sectors Curb Productivity Growth? Panel Data Evidence For OECD Countries," The Review of Economics and Statistics, MIT Press, vol. 95(5), pages 1750-1768, December.
    12. Joseph Francois & Bernard Hoekman, 2010. "Services Trade and Policy," Journal of Economic Literature, American Economic Association, vol. 48(3), pages 642-692, September.
    13. Guglielmo Barone & Federico Cingano, 2011. "Service Regulation and Growth: Evidence from OECD Countries," Economic Journal, Royal Economic Society, vol. 121(555), pages 931-957, September.
    14. Rendall, Michelle, 2013. "Structural Change in Developing Countries: Has it Decreased Gender Inequality?," World Development, Elsevier, vol. 45(C), pages 1-16.
    15. Jens Matthias Arnold & Beata Javorcik & Molly Lipscomb & Aaditya Mattoo, 2016. "Services Reform and Manufacturing Performance: Evidence from India," Economic Journal, Royal Economic Society, vol. 126(590), pages 1-39, February.
    16. Dennis Novy, 2013. "Gravity Redux: Measuring International Trade Costs With Panel Data," Economic Inquiry, Western Economic Association International, vol. 51(1), pages 101-121, January.
    17. Claudia Goldin, 2006. "The Quiet Revolution That Transformed Women's Employment, Education, and Family," American Economic Review, American Economic Association, vol. 96(2), pages 1-21, May.
    18. Jens Matthias Arnold & Aaditya Mattoo & Gaia Narciso, 2008. "Services Inputs and Firm Productivity in Sub-Saharan Africa: Evidence from Firm-Level Data," Journal of African Economies, Centre for the Study of African Economies, vol. 17(4), pages 578-599, August.
    19. Ssozi, John & Amlani, Shirin, 2015. "The Effectiveness of Health Expenditure on the Proximate and Ultimate Goals of Healthcare in Sub-Saharan Africa," World Development, Elsevier, vol. 76(C), pages 165-179.
    20. Alessandro Barattieri & Ingo Borchert & Aaditya Mattoo, 2016. "Cross‐border mergers and acquisitions in services: The role of policy and industrial structure," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 49(4), pages 1470-1501, November.
    21. Francisco J. Buera & Joseph P. Kaboski, 2009. "Can Traditional Theories of Structural Change Fit The Data?," Journal of the European Economic Association, MIT Press, vol. 7(2-3), pages 469-477, 04-05.
    22. Schettkat, Ronald & Yocarini, Lara, 2006. "The shift to services employment: A review of the literature," Structural Change and Economic Dynamics, Elsevier, vol. 17(2), pages 127-147, June.
    23. Olivier Cattaneo & Michael Engman & Sebastián Sáez & Robert M. Stern, 2010. "International Trade in Services : New Trends and Opportunities for Developing Countries," World Bank Publications - Books, The World Bank Group, number 2476.
    24. Maria Bas, 2013. "Does Services Liberalization Affect Manufacturing Firms' Export Performance? Evidence from India," Working Papers 2013-17, CEPII research center.
    25. Erik van der Marel, 2012. "Trade in Services and TFP: The Role of Regulation," The World Economy, Wiley Blackwell, vol. 35(11), pages 1530-1558, November.
    26. Joshi, Devin K. & Hughes, Barry B. & Sisk, Timothy D., 2015. "Improving Governance for the Post-2015 Sustainable Development Goals: Scenario Forecasting the Next 50years," World Development, Elsevier, vol. 70(C), pages 286-302.
    27. Koehler, Johanna & Thomson, Patrick & Hope, Robert, 2015. "Pump-Priming Payments for Sustainable Water Services in Rural Africa," World Development, Elsevier, vol. 74(C), pages 397-411.
    28. 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.
    29. Mattoo, Aaditya & Rathindran, Randeep, 2006. "Measuring Services Trade Liberalization and Its Impact on Economic Growth: An Illustration," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 21, pages 64-98.
    30. World Bank, 2010. "World Development Report 2010," World Bank Publications - Books, The World Bank Group, number 4387.
    31. 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 - Books, The World Bank Group, number 21285.
    32. Konan, Denise Eby & Maskus, Keith E., 2006. "Quantifying the impact of services liberalization in a developing country," Journal of Development Economics, Elsevier, vol. 81(1), pages 142-162, October.
    33. Victor R. Fuchs, 1968. "The Service Economy," NBER Books, National Bureau of Economic Research, Inc, number fuch68-1.
    34. Levine, Ross & Renelt, David, 1992. "A Sensitivity Analysis of Cross-Country Growth Regressions," American Economic Review, American Economic Association, vol. 82(4), pages 942-963, September.
    35. Goldin, Claudia, 2006. "The Quiet Revolution That Transformed Women’s Employment, Education, and Family," Scholarly Articles 2943933, Harvard University Department of Economics.
    36. Ahsan, Reshad N., 2013. "Input tariffs, speed of contract enforcement, and the productivity of firms in India," Journal of International Economics, Elsevier, vol. 90(1), pages 181-192.
    37. Abbott, Pamela & Sapsford, Roger & Binagwaho, Agnes, 2017. "Learning from Success: How Rwanda Achieved the Millennium Development Goals for Health," World Development, Elsevier, vol. 92(C), pages 103-116.
    38. Alwyn Young, 2014. "Structural Transformation, the Mismeasurement of Productivity Growth, and the Cost Disease of Services," American Economic Review, American Economic Association, vol. 104(11), pages 3635-3667, November.
    39. Young, Alwyn, 2014. "Structural transformation, the mismeasurement of productivity growth, and the cost disease of services," LSE Research Online Documents on Economics 60213, London School of Economics and Political Science, LSE Library.
    40. Aaditya Mattoo & Lucy Payton, 2007. "Services Trade and Development : The Experience of Zambia," World Bank Publications - Books, The World Bank Group, number 6697.
    41. Freund, Caroline & Bolaky, Bineswaree, 2008. "Trade, regulations, and income," Journal of Development Economics, Elsevier, vol. 87(2), pages 309-321, October.
    42. Bas, Maria, 2014. "Does services liberalization affect manufacturing firms’ export performance? Evidence from India," Journal of Comparative Economics, Elsevier, vol. 42(3), pages 569-589.
    43. 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.
    Full references (including those not matched with items on IDEAS)

    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. 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).
    2. Bernard Hoekman, 2017. "Trade in services: Opening markets to create opportunities," WIDER Working Paper Series 031, World Institute for Development Economic Research (UNU-WIDER).
    3. 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.
    4. 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.
    5. Zhuoran Bai & Shuang Meng & Zhuang Miao & Yan Zhang, 2023. "Liberalization for services foreign direct investment and product mix adjustment: Evidence from Chinese exporting firms," Review of International Economics, Wiley Blackwell, vol. 31(2), pages 363-388, May.
    6. Omar Bamieh & Matteo Fiorini & Bernard Hoekman & Adam Jakubik, 2020. "Services Input Intensity and US Manufacturing Employment Responses to the China Shock," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(2), pages 333-349, September.
    7. 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.
    8. Bas, Maria, 2020. "The effect of communication and energy services reform on manufacturing firms’ innovation," Journal of Comparative Economics, Elsevier, vol. 48(2), pages 339-362.
    9. 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.
    10. 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.
    11. Zongo, Amara, 2021. "The impact of services trade restrictiveness on food trade," International Economics, Elsevier, vol. 166(C), pages 71-94.
    12. 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.
    13. Xin Fu & Tangyou Wang & Hongxu Yang, 2023. "Does Service Trade Liberalization Promote Service Productivity? Evidence from China," Sustainability, MDPI, vol. 15(8), pages 1-22, April.
    14. Fiorini, Matteo; Lebrand, Mathilde, 2016. "The Political Economy of Services Trade Agreements," Economics Working Papers ECO2016/05, European University Institute.
    15. Matteo Fiorini & Bernard Hoekman, 2017. "Economic Governance, Regulation and Services Trade Liberalization," RSCAS Working Papers 2017/27, European University Institute.
    16. Joseph Francois & Bernard Hoekman, 2010. "Services Trade and Policy," Journal of Economic Literature, American Economic Association, vol. 48(3), pages 642-692, September.
    17. Ariu, Andrea & Breinlich, Holger & Corcos, Gregory & Mion, Giordano, 2019. "The interconnections between services and goods trade at the firm-level," Journal of International Economics, Elsevier, vol. 116(C), pages 173-188.
    18. Sèna K. Gnangnon, 2021. "Aid for Trade and services export diversification in recipient countries," Australian Economic Papers, Wiley Blackwell, vol. 60(2), pages 189-225, June.
    19. Edward J. Balistreri & Zoryana Olekseyuk & David G. Tarr, 2017. "Privatisation and the unusual case of Belarusian accession to the WTO," The World Economy, Wiley Blackwell, vol. 40(12), pages 2564-2591, December.
    20. 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.

    More about this item

    Keywords

    Services; Trade policy; Sustainable development goals;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

    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:eee:wdevel:v:112:y:2018:i:c:p:1-12. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    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.