Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/70175
Authors: 
Dettmer, Bianka
Year of Publication: 
2012
Series/Report no.: 
Jena Economic Research Papers 2012,049
Abstract: 
Innovations in information- and telecommunication technology render the proximity requirement between business partners obsolete and make business service outsourcing via cross-border trade more feasible. Although the (service-led) growth prospects have been widely discussed, evidence at the country level is scarce. In this paper, we evaluate the effect of openness to trade commercial- and specialized business services on long-run growth by applying a dynamic panel data approach to account for unobserved country specific effects and endogenous growth determinants. The system GMM estimates validate that a long-run growth effect for countries taking part in the outsourcing process of producer services exists. The growth effect is significantly stronger in a sample of Non-OECD countries and suggests a kind of catching-up process. Evidence from two stage least square indicate that the impact of professional service regulation on long-run growth work rather indirectly through trade flows.
Subjects: 
international trade
business services
growth
system GMM
JEL: 
F12
F15
L84
O41
Document Type: 
Working Paper

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