Services Liberalization and GVC Participation [electronic resource] : New Evidence for Heterogeneous Effects by Income Level and Provisions / Lee, Woori.
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TextPublication details: Washington, D.C. : The World Bank, 2018Description: 1 online resource (47 p.)Subject(s): Global Value Chains | Gravity Equation | International Economics and Trade | Non-Establishment Rights | Private Sector Development | Regional Trade Agreements | Services Liberalization | Trade and ServicesAdditional physical formats: Lee, Woori.: Services Liberalization and GVC Participation: New Evidence for Heterogeneous Effects by Income Level and ProvisionsOnline resources: Click here to access online Abstract: Participation in global value chains is a key element in the industrialization strategies of many developing nations. This paper investigates the role of services liberalization in promoting participation in global value chains. Using the gravity framework, it examines the impact of services trade agreements on gross trade and global value chain trade (backward and forward participation) in goods. It finds that services trade agreements promote both, but especially global value chain trade, although the effects are heterogeneous: the impact is greater for developing nation exporters. Moreover, services agreements that allow the export of services without local presence (non-establishment rights) are particularly important in fostering participation in global value chains.
Participation in global value chains is a key element in the industrialization strategies of many developing nations. This paper investigates the role of services liberalization in promoting participation in global value chains. Using the gravity framework, it examines the impact of services trade agreements on gross trade and global value chain trade (backward and forward participation) in goods. It finds that services trade agreements promote both, but especially global value chain trade, although the effects are heterogeneous: the impact is greater for developing nation exporters. Moreover, services agreements that allow the export of services without local presence (non-establishment rights) are particularly important in fostering participation in global value chains.
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