Working Paper: CEPR ID: DP5760
Authors: Bernard Hoekman
Abstract: Since the mid 1980s a substantial amount of research has been undertaken on trade in services. Much of this is inspired by the WTO or regional trade agreements, especially the EU, but an increasing number of papers focus on the impacts of services sector liberalization. This paper surveys the literature, focusing on contributions that investigate the determinants of international trade and investment in services, the potential gains from greater trade (and liberalization) and efforts to cooperate to achieve such liberalization through trade agreements. There is increasing evidence that services liberalization is an important source of potential welfare gains, but relatively little research has been done that can inform the design of international cooperation - both trade agreements and development assistance - so as to more effectively promote development objectives.
Keywords: economic development; trade agreements; trade in services; WTO
JEL Codes: F1; F2; F5; L80
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Liberalization of services (L86) | Welfare gains (D69) |
| Greater trade in services (F19) | Economic growth and development (O29) |
| Expansion of services in economies (O49) | Increases in productivity and overall economic performance (O49) |
| Services sector (L84) | Affects employment and productivity levels (J29) |
| Indirect exports of services (F10) | Contribute to a country's foreign exchange earnings (F10) |
| Trade agreements under WTO (F13) | Facilitate liberalization process (O24) |