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Services Productivity and Trade Openness: Case of ASEAN

Author

Listed:
  • Shandre Mugan THANGAVELU

    (University of Adelaide)

  • Lili Yan ING

    (Economic Research Institute for ASEAN and East Asia (ERIA) and University of Indonesia)

  • Shujiro URATA

    (Waseda University and Economic Research Institute for ASEAN and East Asia (ERIA))

Abstract

Using fixed effect and Generalised Method of Moments (GMM) estimations, this paper analyses the impacts of trade on the labour productivity of the services sector (at the four key sub-services sector levels: (i) wholesale, retail, and hotel; (ii) transport, storage, and communications; (iii) finance, insurance, and real estate; and (iv) community, social, and personal sectors) for five ASEAN countries—Indonesia, Malaysia, the Philippines, Singapore, and Thailand—from 1990 to 2005. The results show that more exposure to exports will improve labour productivity in the services sector in these countries. Based on input–output relationships, services play an important role as inputs in the manufacturing sector, which is notable in Indonesia, Malaysia, Singapore, and Thailand.

Suggested Citation

  • Shandre Mugan THANGAVELU & Lili Yan ING & Shujiro URATA, 2015. "Services Productivity and Trade Openness: Case of ASEAN," Working Papers DP-2015-56, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2015-56
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    References listed on IDEAS

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    Cited by:

    1. Serfraz, Ayesha, 2017. "Foreign direct investment inflows and labor productivity in Pakistan: A sector-wise panel cointegration analysis," ZÖSS-Discussion Papers 65, University of Hamburg, Centre for Economic and Sociological Studies (CESS/ZÖSS).
    2. Munshi Naser Ibne Afzal & Shamim Siddiqui & Susmita Dutta, 2018. "Determinants of entrepreneurial capability (EC) environment in ASEAN-05 economies - a log-linear stochastic frontier analysis," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 8(1), pages 1-14, December.

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    More about this item

    Keywords

    : ASEAN; Services Sector; Labour productivity; Free Trade Agreement; InputOutput;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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