The Role of Services Trade in Economic Development

British Journal of Economics, Management and Trade, Vol. 5 Issue 3, 2015

16 Pages Posted: 14 Nov 2014

Date Written: November 12, 2014

Abstract

This paper is an attempt to investigate the impact of services trade on economic development of Sub-Sahara African (SSA) countries. Our analysis is based on a panel data framework over the period 1990 to 2010 covering thirty-three countries. The paper employs the endogenous growth model to examine the nonlinearities associated with services exports and services imports in the economic development process of SSA countries under consideration. The trade data was disaggregated into travel, transport and other services. The panel data constructed was estimated using ordinary pooled, fixed effects and random effects model techniques and the efficient model was selected based on the Hausman test. The paper finds that both services exports and services imports enhance economic development process. The study also indicates that labour and capital play an important role in the SSA economies.

Keywords: Economic development; Services trade; Panel data analysis

JEL Classification: O11, G2, N7, C33

Suggested Citation

Alege, Philip Olasupo and Ogundipe, Adeyemi, The Role of Services Trade in Economic Development (November 12, 2014). British Journal of Economics, Management and Trade, Vol. 5 Issue 3, 2015. Available at SSRN: https://ssrn.com/abstract=2523724

Philip Olasupo Alege

Covenant University ( email )

P.M.B. 1023
Km 10 Idiroko road
Ota, Ogun State 234
Nigeria

Adeyemi Ogundipe (Contact Author)

Covenant University ( email )

Canaanland
Km 10 Idiroko road
Ota, 24001
Nigeria
+2348161927372 (Phone)

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