The impact of SFTAs on Domestic Value-Added in Services: Evidence from 78 Countries

Zhao Jinlong, Jiang Hao and Lu Boyi
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Zhao Jinlong: Shanghai University
Jiang Hao: Shanghai University
Lu Boyi: Shanghai University

Journal of Economic Integration, 2026, vol. 41, issue 3, 569-599

Abstract: This study delves into the impact of Service Free Trade Agreements (SFTAs) on the domestic value-added (DVA) exports in services among member countries. The research demonstrates that SFTAs positively influence the DVA exports in services, enhancing the members' positions in Global Value Chains (GVCs) and improving the competitiveness of DVA. The effects are more stable and consistent in North-North SFTAs, particularly as GVCs deepen. The trade promotion effects of SFTAs also exhibit industry-level heterogeneity. Moreover, the results remain robust by introducing the proportion of intermediate trade, alternative GDP, and dynamic distance variables.

Keywords: Service Free Trade Agreements (SFTAs); Domestic Value Added in Service; Global Value Chains (GVCs) (search for similar items in EconPapers)
JEL-codes: F13 F14 F15 L80 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:ris:integr:023565

DOI: 10.11130/jei.2026009

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