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World Trade in Services
Article

World Trade in Services

Evidence from a New Dataset

IMF, 2017

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Editorial Rating

8

Qualities

  • Analytical
  • Innovative
  • Overview

Recommendation

At a time when protectionism threatens global trade, exports of services are growing. The worldwide trade in services is increasing faster than the trade in merchandise, thanks largely to information technologies. Economists Prakash Loungani, Saurabh Mishra, Chris Papageorgiou and Ke Wang offer an authoritative look at the implications this has for the world’s economies. Their succinct analysis reveals some important insights, and getAbstract suggests it to executives and policy makers interested in how the growing services trade might lead to a new round of globalization.

Take-Aways

  • While advances in the world’s trading of goods may be slowing down after two decades of growth, the global trade in services has been growing.
  • Exports in the telecommunications, computer and information services sector grew the fastest, compared to other service sectors, between 1995 and 2014.
  • Financial services’ share of world exports has rebounded since the 2008 crisis, reaching $349 billion in 2014.

About the Authors

Prakash Loungani, Chris Papageorgiou and Ke Wang are with the IMF. Saurabh Mishra is a senior financial consultant at the International Finance Corporation.