Service Exports and Productivity: Evidence from OECD Panel Data
Politická ekonomie, 2021, vol. 2021, issue 3, 298-321
This study aims to investigate the relationship between service exports and productivity in 27 OECD countries by using a panel dataset for the years 1995-2018. In the theoretical context, this relationship is basically handled by the learning-by-exporting and self-selection mechanisms. Additionally, product life cycle and technological gap theories also have implications related to the export and productivity association. In the study, after detecting the cross-sectional dependence, the stationarity characteristics of the exports and productivity series were investigated by Pesaran's (2007) panel unit root tests. The findings of Westerlund (2007) panel co-integration test indicated that there is a long-run equilibrium relationship between service exports and productivity. Common correlated effects estimators also supported this finding and showed that productivity affects exports positively in both short and long run. Finally, Dumitrescu and Hurlin's (2012) heterogeneous panel causality tests showed that there is a unidirectional causal relationship running from productivity to service exports. The findings support the predictions of product life cycle theory and technological gap theory regarding the exports and productivity linkage and indicate the validity of the self-selection mechanism for OECD countries' service exports.
Keywords: service exports; labour productivity in services; panel data; OECD countries; JEL: C23; F14; F16 (search for similar items in EconPapers)
JEL-codes: C23 F14 F16 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
free of charge
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:prg:jnlpol:v:2021:y:2021:i:3:id:1319:p:298-321
Ordering information: This journal article can be ordered from
Redakce Politické ekonomie, Vysoká škola ekonomická, nám. W. Churchilla 4, 130 67 Praha 3
Access Statistics for this article
Politická ekonomie is currently edited by Jiřina Bulisová
More articles in Politická ekonomie from Prague University of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Stanislav Vojir ().