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WTO Working Papers

WTO working papers usually represent research in progress. Such research may be conducted in the preparation of WTO Secretariat reports, studies or other material for WTO members. The papers are circulated for comment because the WTO considers critical review of professional research to be extremely important.

English

Services and Global Value Chains

Some Evidence on Servicification of Manufacturing and Services Networks

This paper analyses the role of services in international trade through the lens of global value chains (GVCs). Services account for more than 70% of world GDP but only for around 20% of world trade in balance of payments terms. In value added terms, accounting for services embodied in exported goods, services account for 40% of world trade. Services industries increasingly produce in networked or "fragmented" arrangements. The paper lays out conceptual and measurement issues related to services networks and provides evidence based on trade in value added statistics and on a case study on the film industry. In contrast to goods value chains, services networks appear less fragmented internationally based on trade in value added statistics and survey evidence. However, to better capture the international services fragmentation, advances in statistics by enterprise characteristics and by mode of supply, i.e. taking into account the movement of labour and capital, are required.

English

Keywords: trade in services, Trade in value added, services networks, global value chains
JEL: F23: International Economics / International Factor Movements and International Business / Multinational Firms; International Business; L23: Industrial Organization / Firm Objectives, Organization, and Behavior / Organization of Production; L82: Industrial Organization / Industry Studies: Services / Entertainment; Media; L80: Industrial Organization / Industry Studies: Services / Industry Studies: Services: General; F14: International Economics / Trade / Empirical Studies of Trade; D57: Microeconomics / General Equilibrium and Disequilibrium / General Equilibrium and Disequilibrium: Input-Output Tables and Analysis
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