Services Linkages and the Value Added Content of Trade

Services trade constitute roughly one-third of trade on a value added basis, and much of this is concentrated in margin services (transport, logistics) linked to trade in goods. However, producer services are also part of the value added contained in traded goods. This is especially true in high income countries, where services account for roughly 70 percent of value added. Working with data (a set of global social accounting matrices spanning intermittent years from 1992 to 2007) this paper examines the services embodied in trade on a value added basis. This includes not only the direct and indirect contribution of services to value added contained in a given country s exports, but also the extent to which third-country value added in services, through intermediate linkages of imported goods and services, are also embodied in production and trade. This exercise serves to highlight not only the importance of non-tradables in trade, but also by extension the importance that productivity, foreign affiliates sales, and trade and investment in services may hold for interdependence and cross-border linkages.

Bibliographic Details

Main Authors:	Francois, Joseph, Manchin, Miriam, Tomberger, Patrick
Language:	English en_US
Published:	World Bank, Washington, DC 2013-05
Subjects:	AGGREGATE TRADE, AGREEMENT ON TRADE, AGRICULTURE, APPAREL, BALANCE OF PAYMENTS, BARRIERS TO TRADE, BENCHMARKING, BILATERAL TRADE, BILATERAL TRADE DATA, BORDER TRADE, CLIMATE CHANGE, COMMERCIAL POLICY, COMMON MARKET, COMPARATIVE ADVANTAGE, COMPARATIVE ADVANTAGE INDEX, COMPETITIVENESS, COMPETITIVENESS OF GOODS, CROSSING, CUSTOMS, CUSTOMS UNION, DEVELOPING COUNTRIES, DEVELOPMENT ECONOMICS, DEVELOPMENT POLICY, DIRECT VALUE, DOMESTIC MARKET, DRIVERS, DRIVING, ECONOMETRICS, ECONOMIC EFFECTS, ECONOMIC ORDER, ECONOMIC POLICY, ECONOMIC SYSTEMS, EXPENDITURE, EXPENDITURES, EXPORT MARKETS, EXPORT SHARES, EXPORT VALUE, EXPORTERS, EXPORTS, EXTERNAL TRADE, FINAL GOODS, GDP, GENERAL AGREEMENT ON TRADE IN SERVICES, GENERAL EQUILIBRIUM, GLOBAL TRADE, GLOBAL TRADE ANALYSIS, GROSS EXPORTS, GROSS NATIONAL PRODUCT, GROSS OUTPUT, GROSS VALUE, HUMAN CAPITAL, IMPACT OF TRADE, IMPORT COSTS, IMPORT SUBSTITUTION, IMPORTS, INCOME, INDUSTRIAL ECONOMIES, INDUSTRIAL ECONOMY, INDUSTRIALIZATION, INPUT-OUTPUT TABLES, INTERMEDIATE GOODS, INTERMEDIATE INPUTS, INTERNATIONAL ECONOMICS, INTERNATIONAL TRADE, INTERNATIONAL TRADE COMMISSION, INTERNATIONAL TRADE IN SERVICES, INTERNATIONAL TRADE STATISTICS, INVESTMENT FLOWS, MARKET POWER, MARKET STUDIES, METAL PRODUCTS, MOBILITY, MULTILATERAL RULES, MULTINATIONAL FIRMS, MULTIPLIERS, NATIONAL INCOME, OPENNESS, PATTERN OF TRADE, PRODUCTIVITY, PRODUCTIVITY GROWTH, PUBLIC GOOD, REGIONAL TRADE, REGIONAL TRADE AGREEMENTS, SALE, SALES, SPECIALIZATION, TARIFF EQUIVALENTS, TOTAL COSTS, TRADE DATA, TRADE FLOWS, TRADE IN GOODS, TRADE IN SERVICES, TRADE LIBERALIZATION, TRADE MODEL, TRADE PATTERNS, TRADE PERFORMANCE, TRADE POLICY, TRADE REFORM, TRADE TAXES, TRADE VALUES, TRANSPORT, TRANSPORT EQUIPMENT, TRANSPORT SECTOR, TRANSPORT SERVICES, TRUE, URUGUAY ROUND, VALUE ADDED, VALUE OF EXPORTS, VALUE OF OUTPUT, VALUE OF TRADE, WORLD TRADE, WORLD TRADE ORGANIZATION, WTO,
Online Access:	http://documents.worldbank.org/curated/en/2013/05/17655249/services-linkages-value-added-content-trade https://hdl.handle.net/10986/15574
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