Logo image
Services Trade Restrictiveness and Manufacturing Export Sophistication
Journal article   Peer reviewed

Services Trade Restrictiveness and Manufacturing Export Sophistication

Xiaoyan Su, Sajid Anwar, Ying Zhou and Xuan Tang
North American Journal of Economics and Finance, Vol.51, 101058
2020
url
https://doi.org/10.1016/j.najef.2019.101058View
Published Version

Abstract

services trade export sophistication manufacturing sector trade restrictiveness
This paper highlights the importance of services trade liberalization. It is well-known that there is a strong relationship between the level of economic development of a country and the quality of its export basket. Since the pioneering work of Hausmann, Hwang, and Rodrik (2007), several studies have attempted to identify the determinants of export sophistication. In this paper, based on the existing literature, we argue that restrictiveness of services sector trade can have a negative impact on the level of export sophistication. Using panel data from 36 countries over the 2005-2014 period, we show that the impact of services sector trade restrictiveness on export sophistication is negative and statistically significant. We find that this negative effect has increased in the post-2007 period. Furthermore, restrictiveness of trade in modern services is relatively more detrimental to manufacturing export sophistication. A series of endogeneity and robustness tests confirm the reliability of our main empirical result. Our analysis suggests that services sector trade liberalization can also be used as a development strategy by developing countries.

Details

Metrics

1 File views/ downloads
89 Record Views

InCites Highlights

These are selected metrics from InCites Benchmarking & Analytics tool, related to this output

Collaboration types
Domestic collaboration
International collaboration
Web Of Science research areas
Business, Finance
Economics

UN Sustainable Development Goals (SDGs)

This output has contributed to the advancement of the following goals:

#8 Decent Work and Economic Growth
#17 Partnerships for the Goals

Source: InCites

Logo image