Measuring Services Trade Liberalization and Its Impact on Economic Growth: An Illustration

India's surge in modern services exports: Empirics for policy

“…Empirical evidence also suggests that export-led growth strategy has been successful in India (Nataraj, Sahoo, & Kamaih, 2001;Sahoo & Dash, 2012). Like trade in goods, trade in services may increase the scale of domestic activity, resources allocation, employment opportunities and productivity growth through technology spillover effect (Mattoo, Rathindran, & Subramanian, 2006). In a recent study, Dash and Parida (2011) find that India's service sector-led growth since 1990s relates to higher growth in services trade.…”

Foreign direct investment in services and manufacturing productivity: Evidence for Chile

“…The microeconomic evidence provided by our study contributes to the emerging literature on the impact of services liberalization on growth and the performance of services users. At the macro level, Eschenbach and Hoekman (2006) and Mattoo et al (2006) show that countries with liberalized service sectors grow faster, once all standard growth correlates are controlled for. Based on computable general equilibrium models, Jensen et al (2007) and Konan and Maskus (2006) argue that business services liberalization could bring large GDP gains to Tunisia and Russia, respectively.…”

Trade volume and economic growth in the MENA region: Goods or services?

“…The literature reveals a positive association between financial openness and growth (Francois and Schuknecht, 1999;Eschenbach and Francois, 2006;Bayraktar and Wang, 2006), although the dependent variables and financial openness indicators vary between studies according to data availability. Mattoo et al (2006) construct a policy-based measure of the openness of a country's services regime for two key service sectors, basic telecommunications and financial services. They show a statistically strong positive relation between openness in financial and telecommunication services and long run growth performance.…”