Services in Global Value Chains: Trade patterns and gains from specialisation

Sébastien Miroudot and Charles Cadestin
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Charles Cadestin: OECD

No 208, OECD Trade Policy Papers from OECD Publishing

Abstract: Within global value chains (GVCs), services and manufacturing activities are intertwined. This report further investigates the role played by services in GVCs by looking at patterns of specialisation in 23 services industries over the period 2000-2014. Relying on the concept of revealed comparative advantage, it highlights that all countries have a comparative advantage in specific services industries, either in services within manufacturing value chains or in services exported as final products to consumers. A value-added approach is important to analyse the specialisation in services. In addition, there are tangible productivity gains out of this specialisation, as well as gains in terms of employment. Finally, empirical results suggest that services trade restrictiveness negatively affects bilateral flows of service value-added within GVCs. Both domestic reforms and the reduction of barriers in partner countries can benefit services sectors and the activities that rely on services inputs.

Keywords: global value chains; productivity; revealed comparative advantage; Services; servicification; trade in services; trade in value-added (search for similar items in EconPapers)
JEL-codes: F13 F14 F23 F68 L80 (search for similar items in EconPapers)
Date: 2017-12-06
New Economics Papers: this item is included in nep-int and nep-tid
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Citations: View citations in EconPapers (26)

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Persistent link: https://EconPapers.repec.org/RePEc:oec:traaab:208-en

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