Is the Globalization of Services Beneficial for Developing Countries?
“Topics in Economic Globalization”
Is the globalization of services beneficial for developing countries?
Basma Abdelaziz@
University of Göttingen Faculty of Economic Sciences
Abstract:
International Trade in Services is regarded as the new phase of globalization, which has been growing for more than a decade. Developing Countries particularly in Asia have become the largest producers of services for industrial countries. They also specialized in many professional services such as back office services, customer care, call-centers and also research services. Developing countries didn´t only take part in these services, but they also proved to be successful in offering them through the comparative advantages they have. So, the old idea that developing countries won´t be able to compete with developed countries in liberalized service trade proved to be a mistake. Developing countries are now competitive, they are playing an important role in the world service trade and they bring very high growth rates to foreign investors.
@ abdelaziz.basma@gmail.com Primo Braga, C. A. ; March 1996 ; “The Impact of the Internationalization of Services on Developing Countries”.
Table of Contents:
I. Introduction: II. Defining Services
Definition Classification of Services Trade in Services The GATS Classification of Services
III. Important Factors in Service Trade IV. Barriers in Service Trade
Non-Tariff Barriers in Service Trade
V. Impacts of globalization of services on developing countries
Impact on performance Impact on growth Impact on foreign trade Impact on FDI
VI. Concluding Remarks Appendix
Figure 1 : Openness in developing countries: Figure 2: WTO Members share in world commercial services trade Chart 1: Synthetic view of modes of supply Figure 3: Trade restrictiveness index in the professional service sector Figure 4: Trade restrictiveness index in the banking service sector Table 2: FDI outflows from some major developing countries
Is the globalization of services beneficial for developing countries?
Basma Abdelaziz@
University of Göttingen Faculty of Economic Sciences
Abstract:
International Trade in Services is regarded as the new phase of globalization, which has been growing for more than a decade. Developing Countries particularly in Asia have become the largest producers of services for industrial countries. They also specialized in many professional services such as back office services, customer care, call-centers and also research services. Developing countries didn´t only take part in these services, but they also proved to be successful in offering them through the comparative advantages they have. So, the old idea that developing countries won´t be able to compete with developed countries in liberalized service trade proved to be a mistake. Developing countries are now competitive, they are playing an important role in the world service trade and they bring very high growth rates to foreign investors.
@ abdelaziz.basma@gmail.com Primo Braga, C. A. ; March 1996 ; “The Impact of the Internationalization of Services on Developing Countries”.
Table of Contents:
I. Introduction: II. Defining Services
Definition Classification of Services Trade in Services The GATS Classification of Services
III. Important Factors in Service Trade IV. Barriers in Service Trade
Non-Tariff Barriers in Service Trade
V. Impacts of globalization of services on developing countries
Impact on performance Impact on growth Impact on foreign trade Impact on FDI
VI. Concluding Remarks Appendix
Figure 1 : Openness in developing countries: Figure 2: WTO Members share in world commercial services trade Chart 1: Synthetic view of modes of supply Figure 3: Trade restrictiveness index in the professional service sector Figure 4: Trade restrictiveness index in the banking service sector Table 2: FDI outflows from some major developing countries
References: Dossani, R.; Apr. 2005; “Globalization and the Offshoring of Services: The case of India”. Whalley, John; 2004; “Assessing the Benefits to Developing Countries of Liberalization in Services Trade”; The World Economy, 27(8), 1223-1253.