Services Trade, Goods Trade and Productivity Growth: Evidence from a Population of Private Sector Firms

Nikolaj Malchow-Møller; Jakob Roland Munch; Jan Rose Skaksen

doi:10.1007/s10290-014-0208-3

Services Trade, Goods Trade and Productivity Growth: Evidence from a Population of Private Sector Firms

Nikolaj Malchow-Møller, Jakob Roland Munch, Jan Rose Skaksen

10 Citations (Scopus)

Abstract

In this paper, the authors analyze and compare the role of international trade for productivity growth within the service and the manufacturing sector. They distinguish between trade in goods and trade in services within both sectors, and between exports and imports. At the firm level, they find that firms that start to export or import goods experience significant increases in productivity and size. The effects of services trade are typically smaller, confined to exports and vary across sectors. At the sector level, they find that international trade plays a potentially larger role for the productivity development within the service sector than within the manufacturing sector, but it is trade in goods not trade in services that matters most. This suggests that trade intermediaries play an important role for productivity growth in the economy.

Original language	English
Journal	Review of World Economics
Volume	151
Issue number	2
Pages (from-to)	197-229
ISSN	1610-2878
DOIs	https://doi.org/10.1007/s10290-014-0208-3
Publication status	Published - 1 May 2015

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title = "Services Trade, Goods Trade and Productivity Growth: Evidence from a Population of Private Sector Firms",

abstract = "In this paper, the authors analyze and compare the role of international trade for productivity growth within the service and the manufacturing sector. They distinguish between trade in goods and trade in services within both sectors, and between exports and imports. At the firm level, they find that firms that start to export or import goods experience significant increases in productivity and size. The effects of services trade are typically smaller, confined to exports and vary across sectors. At the sector level, they find that international trade plays a potentially larger role for the productivity development within the service sector than within the manufacturing sector, but it is trade in goods not trade in services that matters most. This suggests that trade intermediaries play an important role for productivity growth in the economy.",

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N2 - In this paper, the authors analyze and compare the role of international trade for productivity growth within the service and the manufacturing sector. They distinguish between trade in goods and trade in services within both sectors, and between exports and imports. At the firm level, they find that firms that start to export or import goods experience significant increases in productivity and size. The effects of services trade are typically smaller, confined to exports and vary across sectors. At the sector level, they find that international trade plays a potentially larger role for the productivity development within the service sector than within the manufacturing sector, but it is trade in goods not trade in services that matters most. This suggests that trade intermediaries play an important role for productivity growth in the economy.

AB - In this paper, the authors analyze and compare the role of international trade for productivity growth within the service and the manufacturing sector. They distinguish between trade in goods and trade in services within both sectors, and between exports and imports. At the firm level, they find that firms that start to export or import goods experience significant increases in productivity and size. The effects of services trade are typically smaller, confined to exports and vary across sectors. At the sector level, they find that international trade plays a potentially larger role for the productivity development within the service sector than within the manufacturing sector, but it is trade in goods not trade in services that matters most. This suggests that trade intermediaries play an important role for productivity growth in the economy.

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Services Trade, Goods Trade and Productivity Growth: Evidence from a Population of Private Sector Firms

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