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Export Performance of South and East Asia in Modern Services

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  • Shahbaz Nasir
  • Kaliappa Kalirajan

Abstract

Advancements in information and communications technologies (ICTs) have increased the possibilities for trade in modern services and many Asian emerging and developed economies are participating increasingly in these new trade activities. This paper examines the export performance of these emerging and developed Asian economies in selected modern services: computer and information services, business and professional services, and telecommunications services, using a stochastic frontier gravity type model. Estimation results show that performance of emerging economies in South Asia and the ASEAN region, in terms of realization of export potential, is considerably lower than that of the developed world in North America and Europe. The results also show that the number of graduates and the ICT infrastructure in emerging countries are amongst key factors for modern services exports. These findings suggest that emerging economies need to remove ‘behind the border' constraints and adopt advanced technologies in order to catch up with the high performing developed countries.

Suggested Citation

  • Shahbaz Nasir & Kaliappa Kalirajan, 2013. "Export Performance of South and East Asia in Modern Services," ASARC Working Papers 2013-07, The Australian National University, Australia South Asia Research Centre.
    • Handle: RePEc:pas:asarcc:2013-07
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    File URL: https://crawford.anu.edu.au/acde/asarc/pdf/papers/2013/WP2013_07.pdf
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    Cited by:

    1. Sahoo, Pravakar & Dash, Ranjan Kumar, 2014. "India's surge in modern services exports: Empirics for policy," Journal of Policy Modeling, Elsevier, vol. 36(6), pages 1082-1100.
    2. Deluna, Roperto Jr & Cruz, Edgardo, 2014. "Philippine Export Efficiency and Potential: An Application of Stochastic Frontier Gravity Model," MPRA Paper 53580, University Library of Munich, Germany.
    3. Nguyen Xuan Trung & Nguyen Duc Hung & Nguyen Thi Hien, 2018. "Exploiting the Trade Potential from Integration: Analysing the Impact of Free Trade Agreements between ASEAN and India and China," China Report, , vol. 54(4), pages 442-466, November.
    4. Swapan K. Bhattacharya & Gouranga G. Das, 2014. "Can South–South Trade Agreements Reduce Development Deficits?," Journal of South Asian Development, , vol. 9(3), pages 253-285, December.
    5. Pravakar Sahoo & Ranjan Kumar Dash, 2017. "What Drives India's Surge in Service Exports?," The World Economy, Wiley Blackwell, vol. 40(2), pages 439-461, February.
    6. Prachi Agarwal, 2019. "South Asia: Formulating Services Sector Policies for Development, A Policy Perspective," Development Papers 1903, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) South and South-West Asia Office.

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    More about this item

    Keywords

    Services exports; stochastic frontier gravity model; Asia; North America; and Europe.;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models

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