Service Trade, Regional Specialization, and Welfare

66 Pages Posted: 30 Oct 2023

See all articles by Yuancheng Han

Yuancheng Han

affiliation not provided to SSRN

Jorge Miranda-Pinto

International Monetary Fund (IMF)

Satoshi Tanaka

University of Queensland

Abstract

How much does trade in services affect regional production specialization and welfare? Using unique Canadian trade data, we document that the size of inter-provincial service trade is comparable to that of good trade, and that net exports of services are highly correlated with the value-added share of tradable services across provinces. With a spatial model featuring domestic and international trade, we quantify the effects of service trade. Our results highlight that domestic service trade significantly promotes regional specialization, with heterogeneous welfare gains that reduce regional disparities. Conversely, international service trade generates more uniform welfare gains across provinces.

Keywords: Service Trade, Domestic Trade, Regional Specialization, Regional Disparities, Welfare, Structural Transformation

Suggested Citation

Han, Yuancheng and Miranda-Pinto, Jorge and Tanaka, Satoshi, Service Trade, Regional Specialization, and Welfare. Available at SSRN: https://ssrn.com/abstract=4617795 or http://dx.doi.org/10.2139/ssrn.4617795

Yuancheng Han

affiliation not provided to SSRN ( email )

No Address Available

Jorge Miranda-Pinto

International Monetary Fund (IMF) ( email )

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

Satoshi Tanaka (Contact Author)

University of Queensland ( email )

St Lucia
Brisbane, Queensland 4072
Australia

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
6
Abstract Views
72
PlumX Metrics