- A-Z
- Jena Economic Resea...
- Volume 6
- Business services o...
- Abgebildete Person
- Erschienen
- 3. September 2012
- Nummer des Discussion-Papers
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2012-049
- Schlagwort(e)
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business services
growth
international trade
system GMM
- Zusammenfsg.
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Innovations in information- and telecommunication technology render the proximity requirement between business partners obsolete and make business service outsourcing via cross-border trade more feasible. Although the (service-led) growth prospects have been widely discussed, evidence at the country level is scarce. In this paper, we evaluate the effect of openness to trade commercial- and specialized business services on long-run growth by applying a dynamic panel data approach to account for unobserved country specific effects and endogenous growth determinants. The system GMM estimates validate that a long-run growth effect for countries taking part in the outsourcing process of producer services exists. The growth effect is significantly stronger in a sample of Non-OECD countries and suggests a kind of catching-up process. Evidence from two stage least square indicate that the impact of professional service regulation on long-run growth work rather indirectly through trade flows.
- article pub. typess JER
- Research article
- article languages JER
- Englisch
- JEL-Classification for JER
- F12 - Models of Trade with Imperfect Competition and Scale Economies ; F15 - Economic Integration ; L84 - Personal, Professional, and Business Services ; O41 - One, Two, and Multisector Growth Models