Services Liberalization and GVC Participation : New Evidence for Heterogeneous Effects by Income Level and Provisions
Participation in global value chains is a key element in the industrialization strategies of many developing nations. This paper investigates the role of services liberalization in promoting participation in global value chains. Using the gravity f...
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| Language: | English |
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/232431528996706429/Services-liberalization-and-GVC-participation-new-evidence-for-heterogeneous-effects-by-income-level-and-provisions http://hdl.handle.net/10986/29904 |
| Summary: | Participation in global value chains is
a key element in the industrialization strategies of many
developing nations. This paper investigates the role of
services liberalization in promoting participation in global
value chains. Using the gravity framework, it examines the
impact of services trade agreements on gross trade and
global value chain trade (backward and forward
participation) in goods. It finds that services trade
agreements promote both, but especially global value chain
trade, although the effects are heterogeneous: the impact is
greater for developing nation exporters. Moreover, services
agreements that allow the export of services without local
presence (non-establishment rights) are particularly
important in fostering participation in global value chains. |
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