Services Productivity and Trade Openness: Case of ASEAN

Shandre Mugan Thangavelu, Lili Yan Ing and Shujiro Urata
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Shandre Mugan Thangavelu: University of Adelaide

No DP-2015-56, Working Papers from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: Using fixed effect and Generalised Method of Moments (GMM) estimations, this paper analyses the impacts of trade on the labour productivity of the services sector (at the four key sub-services sector levels: (i) wholesale, retail, and hotel; (ii) transport, storage, and communications; (iii) finance, insurance, and real estate; and (iv) community, social, and personal sectors) for five ASEAN countries—Indonesia, Malaysia, the Philippines, Singapore, and Thailand—from 1990 to 2005. The results show that more exposure to exports will improve labour productivity in the services sector in these countries. Based on input–output relationships, services play an important role as inputs in the manufacturing sector, which is notable in Indonesia, Malaysia, Singapore, and Thailand.

Keywords: : ASEAN; Services Sector; Labour productivity; Free Trade Agreement; InputOutput (search for similar items in EconPapers)
JEL-codes: F14 F15 F16 (search for similar items in EconPapers)
Pages: 32 pages.
Date: 2015-08
New Economics Papers: this item is included in nep-int and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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