Services development and comparative advantage in manufacturing

• 成果类型: Article
• 署名作者: Liu, Xuepeng; Mattoo, Aaditya; Wang, Zhi; Wei, Shang-Jin
• 署名单位: University System of Georgia; Kennesaw State University; The World Bank; University of International Business & Economics; Columbia University; National Bureau of Economic Research
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2019.102438
• 发表日期: 2020
• 关键词: Services; TRADE; Value-Added; comparative advantage

摘要

Most manufacturing activities use inputs from the financial and business services sectors. But these services sectors also compete for resources with manufacturing activities, provoking concerns about deindustrialization attributable to financial services in developed countries like the United States and United Kingdom, and business services in developing countries like India and the Philippines. This paper examines the implications of services development for the export performance of manufacturing sectors. We develop a methodology to quantify the indirect role of services in international trade in goods and construct new measures of revealed comparative advantage based on value-added exports. We show that the development of financial and business services enhances the revealed comparative advantage of manufacturing sectors that use these services intensively but not of other manufacturing sectors. We also find that a country can partially overcome the handicap of an underdeveloped domestic services sector by relying more on imported services inputs. Thus, lower services trade barriers in developing countries can help to promote their manufacturing exports.