Synopses & Reviews
The services sector is key to economic growth, competitiveness, and poverty alleviation. In addition, services exports have become an important part of export diversification strategies for some developing countries. Although industrial countries are still the largest exporters of services, a number of developing countries are among the most dynamic. The share of developing countries in world services exports increased from 14 percent in 1990 to 21 per in 2008. In fact, service sector exports of a number of developing countries are growing faster than their goods exports.This book aims at identifying factors that helped developing countries succeed in exporting services and provides lessons for others. The book focuses on how did developing countries succeed in increasing key services exports and what strategies were successful for services exports as well as what strategies did not deliver the expected results. The framework for analyzing the determinants of services trade is set through an econometric model which is then applied country case studies. Given the paucity of services trade statistics, case study approach is found to be a successful way of dealing with policy specific determinants. . Acknowledging the data constraints and weaknesses, the book brings out the determinants of trade in services by analyzing the experiences of Brazil, Chile, Egypt, India, Kenya, Malaysia and Philippines. These case studies help identify policy frameworks that have been successful as well as policy environments that have not delivered expected results. This book is for trade specialists and policymakers interested in improving their understanding of the fundamentals as well as specific factors that influenced services exports performance. It is a useful tool for governments to design successful trade and promotion strategies, as well as sound domestic policy reforms in the service sector.
The past two decades have seen exciting changes with developing countries emerging as exporters of services. Technological developments now make it easier to trade services across borders. But other avenues are being exploited: tourists visit not just to sightsee but also to be treated and educated, service providers move abroad under innovative new schemes, and some developing countries defy traditional notions by investing abroad in services.Exporting Services: A Developing Country Perspective takes a brave approach, combining exploratory econometric analysis with detailed case studies of representative countries: Brazil, Chile, the Arab Republic of Egypt, India, Kenya, Malaysia, and the Philippines. Two questions lead the analysis: How did these developing countries succeed in exporting services? What policy mix was successful and what strategies did not deliver the expected results? The analysis evaluates the role of three sets of factors: First, the fundamentals, which include a country 's factor endowments, infrastructure, and institutional quality; second, policies affecting trade, investment, and labor mobility in services; and third, proactive policies in services designed to promote exports or investment. The case studies illustrate the complex nature of reforms and policy making in the service sector as well as the benefits of well-implemented reforms. Although success seems to be explained by a set of conditions that are difficult to replicate, common features can also be identified. Several countries have adopted policies to support exports, especially exports of information technology related services. This resource will be valuable for policy makers, experts, and academics who are engaged in efforts to reform service and investment policies in their own country.