Service Export Sophistication and Economic Growth

39 Pages Posted: 20 Apr 2016

See all articles by Saurabh Mishra

Saurabh Mishra

International Monetary Fund (IMF)

Susanna Lundström

The World Bank

Rahul Anand

International Monetary Fund (IMF)

Date Written: March 1, 2011

Abstract

Can increasing sophistication in service exports lead to economic growth? Although services were historically produced primarily for domestic consumption, they are gradually becoming more productive, tradable and unbundled. The authors construct an index of "service exports sophistication" to document this phenomenon. Panel data estimations indicate a positive association between growth in per capita income and higher sophistication of service exports. The results also suggest that this phenomenon is growing in importance over time. Considering the limits of traditional industrialization in igniting global growth, the results provide an alternative channel.

Keywords: Economic Theory & Research, Public Sector Corruption & Anticorruption Measures, Commodities, Housing & Human Habitats, Banks & Banking Reform

Suggested Citation

Mishra, Saurabh and Lundstrom Gable, Susanna and Anand, Rahul, Service Export Sophistication and Economic Growth (March 1, 2011). World Bank Policy Research Working Paper No. 5606. Available at SSRN: https://ssrn.com/abstract=1793019

Saurabh Mishra

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Susanna Lundstrom Gable

The World Bank ( email )

Sweden

Rahul Anand

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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