IDEAS home Printed from https://ideas.repec.org/p/ags/pugtwp/331078.html
   My bibliography  Save this paper

Exports of Services, Exports of Goods, and Economic Growth in Developing Countries

Author

Listed:
  • Gabriele, Alberto

Abstract

This paper and explores quantitatively the nexus between exports of services, exports of goods, and GDP growth, focusing particularly on the role of developing and transition countries, during the last two decades of the XX century. The Introduction briefly exposes some of the shortcomings and methodological problems affecting BOP statistics on international trade in services. The analysis in Sections 2 and 3 shows that, in the long run, services exports do have a positive impact on GDP growth in developing countries. Yet, in the 1990s, the services exports/GDP growth nexus was weaker in developing than in developed countries. Moreover, in developing countries, the growth-enhancing impact of exports as a whole declined, although this decline appears to be due more to the merchandise component of exports rather than to the services component. In the Conclusions, a tentative explanation for the aforementioned results is proposed. Most export-oriented services activities in developing countries are not concentrated in traditional services sectors, tend to be poorly integrated to the rest of the domestic economy, and are y often under the control of foreign economic agents. Thus, their potential as engines for growth is relatively limited. Furthermore, many previously inwardoriented developing countries, under conditions of financial duress, diverted resources towards exports as if they constituted a goal per se, rather than in the framework of a comprehensive long-term growth-maximizing strategy. Such opening-up reforms ended up facing diminishing returns.

Suggested Citation

  • Gabriele, Alberto, 2003. "Exports of Services, Exports of Goods, and Economic Growth in Developing Countries," Conference papers 331078, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
  • Handle: RePEc:ags:pugtwp:331078
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/331078/files/1078.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    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. Sèna Kimm Gnangnon, 2021. "Services diversification and economic growth," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 18(1), pages 49-86, June.
    2. Shujaat Naeem Azmi & Shakeb Akhtar, 2023. "Interactions of services export, financial development and growth: evidence from India," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(5), pages 4709-4724, October.
    3. Michel Lioussis & Mònica Serrano, 2022. "Services trade contribution on global income generation (2000 - 2014) Abstract: This paper investigates the contribution of services trade to the variation of global income generation for the period o," UB School of Economics Working Papers 2022/423, University of Barcelona School of Economics.
    4. Bahman Huseynli, 2023. "Effect of Exports of Goods and Services and Energy Consumption in Italy`s Service Sector," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 254-261, May.
    5. Mold, Andrew & Munyegera, Kasim Ggombe & Mukwaya, Rodgers, 2022. "What Trade-in-Value added databases tell us about Continental Integration – and what it means for the AfCFTA," Conference papers 333505, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Lisha Mengge, 2024. "Foreign trade and economic performance in China, 1860–1911," French Stata Users' Group Meetings 2024 14, Stata Users Group.
    7. Joseph Phiri & Karel Malec & Aubrey Sakala & Seth Nana Kwame Appiah-Kubi & Pavel Činčera & Mansoor Maitah & Zdeňka Gebeltová & Cathy-Austin Otekhile, 2022. "Services as a Determinant of Botswana’s Economic Sustainability," IJERPH, MDPI, vol. 19(22), pages 1-21, November.
    8. Sineenat Sermcheep, 2019. "Services Export and Economic Growth in ASEAN Countries," Journal of Asian Economic Integration, , vol. 1(2), pages 163-182, September.

    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. Simon J.Evenett & Mia Mikic & Ravi Ratnayake (ed.), 2011. "Trade-led growth: A sound strategy for Asia," ARTNeT Books and Research Reports, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), number brr10.
    2. Eromenko, Igor, 2010. "Accession to the WTO. Computable General Equilibrium Analysis: the Case of Ukraine. Part I," MPRA Paper 67476, University Library of Munich, Germany.
    3. Ianchovichina, Elena, 2004. "Trade policy analysis in the presence of duty drawbacks," Journal of Policy Modeling, Elsevier, vol. 26(3), pages 353-371, April.
    4. Ivanic, Maros & Martin, Will, 2010. "Promoting Global Agricultural Growth and Poverty Reduction," Conference papers 331944, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Ronald D. Sands & Katja Schumacher & Hannah Forster, 2014. "U.S. CO2 Mitigation in a Global Context: Welfare, Trade and Land Use," The Energy Journal, , vol. 35(1_suppl), pages 181-198, June.
    6. Sergey Paltsev & John Reilly, 2007. "Long-Term Energy Scenarios for Asia," Energy and Environmental Modeling 2007 24000047, EcoMod.
    7. Pierre Boulanger & Hasan Dudu & Emanuele Ferrari & George Philippidis, 2016. "Russian Roulette at the Trade Table: A Specific Factors CGE Analysis of an Agri-food Import Ban," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(2), pages 272-291, June.
    8. Gruere, Guillaume P. & Mevel, Simon & Bouet, Antoine, 2007. "Genetically Modified Rice, International Trade, and First-Mover Advantage: The Case of India and China," 2007: China's Agricultural Trade: Issues and Prospects Symposium, July 2007, Beijing, China 55032, International Agricultural Trade Research Consortium.
    9. Peterson, Everett B., 2004. "A Comparison of Marketing Margins Across Sectors, Users, and Regions," Conference papers 331224, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    10. Jiang, Tingsong, 2003. "The Impact of China's WTO Accession on its Regional Economies," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 11.
    11. Knut Einar Rosendahl & Jon Strand, 2011. "Carbon Leakage from the Clean Development Mechanism," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 27-50.
    12. Henseler, Martin & Piot-Lepetit, Isabelle & Ferrari, Emanuele & Mellado, Aida Gonzalez & Banse, Martin & Grethe, Harald & Parisi, Claudia & Hélaine, Sophie, 2013. "On the asynchronous approvals of GM crops: Potential market impacts of a trade disruption of EU soy imports," Food Policy, Elsevier, vol. 41(C), pages 166-176.
    13. Adams, Philip D., 2008. "Insurance against Catastrophic Climate Change: How Much Will an Emissions Trading Scheme Cost Australia?," Conference papers 331770, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    14. Alvaro Calzadilla & Katrin Rehdanz & Richard S.J. Tol, 2008. "The Eonomic Impact Of More Sustainable Water Use In Agriculture: A Computable General Equilibrium Analysis," Working Papers FNU-169, Research unit Sustainability and Global Change, Hamburg University, revised Dec 2008.
    15. Roberto Roson & Richard Damania, the World Bank, Washington D.C., 2016. "Simulating the Macroeconomic Impact of Future Water Scarcity," EcoMod2016 9167, EcoMod.
    16. Alexandre Gohin & GianCarlo Moschini, 2006. "Evaluating the Market and Welfare Impacts of Agricultural Policies in Developed Countries: Comparison of Partial and General Equilibrium Measures," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(2), pages 195-211.
    17. Grant, Jason H. & Hertel, Thomas W. & Rutherford, Thomas F., 2006. "Extending General Equilibrium to the Tariff Line: U.S. Dairy in the DOHA Development Agenda," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25305, International Association of Agricultural Economists.
    18. Fontagné, Lionel & Laborde, David & Mitaritonna, Maria Cristina, 2007. "Assessing the Economic Partnership Agreements (EPAs): a product level approach," Conference papers 331611, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    19. Kym Anderson, 2005. "On the Virtues of Multilateral Trade Negotiations," The Economic Record, The Economic Society of Australia, vol. 81(255), pages 414-438, December.
    20. Pavel Ciaian & d'Artis Kancs & Jan Pokrivcak, 2008. "Comparative Advantages, Transaction Costs and Factor Content of Agricultural Trade: Empirical Evidence from the CEE," EERI Research Paper Series EERI_RP_2008_03, Economics and Econometrics Research Institute (EERI), Brussels.

    More about this item

    Keywords

    International Development; International Relations/Trade;

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration

    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:ags:pugtwp:331078. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/gtpurus.html .

    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.