The Role of Services in Globalisation

18 Pages Posted: 10 Oct 2018

See all articles by Timon Bohn

Timon Bohn

University of Groningen

Steven Brakman

University of Groningen - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Erik Dietzenbacher

University of Groningen - Department of Economics

Date Written: October 2018

Abstract

This paper explores the role of services in international trade and global value chains, and adds to our knowledge on recent trends in globalisation. We employ indicators for trade in value‐added (VA) and for gross exports, and address the following two questions: (i) has trade of VA in services (i.e., the VA created by domestic service industries and embodied in foreign consumption of final products) grown more than trade of VA in manufacturing; and (ii) does trade of VA in services travel further than trade of VA in manufacturing. Based on the World Input‐Output Database (WIOD), we find, in general, that for the period 2000–14, the share of services in exports of VA grew over time, whilst the share of manufacturing remained constant (or grew relatively less). Second, throughout the entire period, services had a larger share in interregional exports of VA than in intraregional exports of VA, whilst the opposite was true for manufacturing. Services were thus more global than manufacturing.

Keywords: international trade, services, value‐added

Suggested Citation

Bohn, Timon and Brakman, Steven and Dietzenbacher, Erik, The Role of Services in Globalisation (October 2018). The World Economy, Vol. 41, Issue 10, pp. 2732-2749, 2018. Available at SSRN: https://ssrn.com/abstract=3264305 or http://dx.doi.org/10.1111/twec.12640

Timon Bohn (Contact Author)

University of Groningen

P.O. Box 800
9700 AH Groningen, Groningen 9700 AV
Netherlands

Steven Brakman

University of Groningen - Department of Economics ( email )

P.O. Box 800
9700 AV Groningen
Netherlands
+31 50 363 3746 (Phone)
+31 50 363 3730 (Fax)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Erik Dietzenbacher

University of Groningen - Department of Economics ( email )

P.O. Box 800
9700 AV Groningen
Netherlands
+31 (0)50 3633813 (Phone)

Register to save articles to
your library

Register

Paper statistics

Downloads
1
Abstract Views
51
PlumX Metrics