International Provision of Trade Services, Trade, and Fragmentation

The author examines the special role that trade liberalization in services industries can play in stimulating trade in both services, and goods. International trade in goods requires inputs from such trade services as transportation, insurance, and...

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Main Author:	Deardorff, Alan V.
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	AIRCRAFT AIRLINES APPROPRIATE TECHNOLOGY CARGO CARRIERS COMPARATIVE ADVANTAGE CONSTRUCTION SERVICES CONSUMER SURPLUS CONSUMERS COST SAVINGS COUNTRY OF ORIGIN CURRENCY DEMAND CURVE DOMESTIC FIRMS DOMESTIC MARKET DOMESTIC PRODUCERS DOMESTIC PROVIDERS DOMESTIC REGULATIONS DOMESTIC SUPPLIERS ECONOMIES OF SCALE ECONOMISTS EQUILIBRIUM FACTOR ENDOWMENTS FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL SERVICES FIXED COSTS FOREIGN COMPANY FOREIGN EXCHANGE FOREIGN MARKETS FOREIGN PROVIDERS FOREIGN SERVICE PROVIDERS FOREIGN SERVICES FOREIGN SUPPLIERS FREE TRADE GATS GATT IMPORTING COUNTRY IMPORTS INCREASING RETURNS INCREASING RETURNS TO SCALE INSURANCE INSURANCE COMPANIES INSURANCE SERVICES INTERNATIONAL EXCHANGE OF GOODS INTERNATIONAL TRADE INTERNATIONAL TRANSACTIONS LIBERALIZATION OF TRADE LIBERALIZATION OF TRADE IN GOODS LIBERALIZING TRADE LOADING MARKET ACCESS MULTILATERAL TRADE MUTUAL RECOGNITION NATIONAL SUPPLIERS OPENNESS PRICE OF IMPORTS PRODUCER SURPLUS PRODUCERS PRODUCTION PROCESSES PROFESSIONAL SERVICES PROPERTY RIGHTS PROVISION OF SERVICES RECOGNITION AGREEMENTS SERVICE ACTIVITIES SERVICE PROVIDER SERVICE SECTORS SERVICE TRANSACTIONS SERVICES SERVICES INDUSTRIES SERVICES LIBERALIZATION SERVICES PROVIDERS SERVICES TRADE SHIPMENTS SHIPPING SHIPPING COSTS SPECIALIZATION TARIFF BARRIERS TARIFF REDUCTION TARIFF REVENUE TRADE TRADE AGREEMENT TRADE BARRIERS TRADE COSTS TRADE IN SERVICES TRADE LIBERALIZATION TRADE NEGOTIATIONS TRADE POLICY TRADE SERVICES TRADE THEORY TRANSPORT COSTS TRANSPORT SERVICES TRANSPORTATION SERVICES TRAVEL SERVICES TRUCKS URUGUAY ROUND VERTICAL SPECIALIZATION WAGES WELFARE EFFECTS WORLD PRICES WORLD TRADE WORLD TRADE ORGANIZATION WTO
Online Access:	http://documents.worldbank.org/curated/en/2001/02/1121177/international-provision-trade-services-trade-fragmentation http://hdl.handle.net/10986/19703

id	okr-10986-19703
recordtype	oai_dc
spelling	okr-10986-197032021-04-23T14:03:44Z International Provision of Trade Services, Trade, and Fragmentation Deardorff, Alan V. AIRCRAFT AIRLINES APPROPRIATE TECHNOLOGY CARGO CARRIERS COMPARATIVE ADVANTAGE CONSTRUCTION SERVICES CONSUMER SURPLUS CONSUMERS COST SAVINGS COUNTRY OF ORIGIN CURRENCY DEMAND CURVE DOMESTIC FIRMS DOMESTIC MARKET DOMESTIC PRODUCERS DOMESTIC PROVIDERS DOMESTIC REGULATIONS DOMESTIC SUPPLIERS ECONOMIES OF SCALE ECONOMISTS EQUILIBRIUM FACTOR ENDOWMENTS FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL SERVICES FIXED COSTS FOREIGN COMPANY FOREIGN EXCHANGE FOREIGN MARKETS FOREIGN PROVIDERS FOREIGN SERVICE PROVIDERS FOREIGN SERVICES FOREIGN SUPPLIERS FREE TRADE GATS GATT IMPORTING COUNTRY IMPORTS INCREASING RETURNS INCREASING RETURNS TO SCALE INSURANCE INSURANCE INSURANCE COMPANIES INSURANCE SERVICES INTERNATIONAL EXCHANGE OF GOODS INTERNATIONAL TRADE INTERNATIONAL TRANSACTIONS LIBERALIZATION OF TRADE LIBERALIZATION OF TRADE IN GOODS LIBERALIZING TRADE LOADING MARKET ACCESS MULTILATERAL TRADE MUTUAL RECOGNITION NATIONAL SUPPLIERS OPENNESS PRICE OF IMPORTS PRODUCER SURPLUS PRODUCERS PRODUCTION PROCESSES PROFESSIONAL SERVICES PROPERTY RIGHTS PROVISION OF SERVICES RECOGNITION AGREEMENTS SERVICE ACTIVITIES SERVICE PROVIDER SERVICE SECTORS SERVICE TRANSACTIONS SERVICES SERVICES INDUSTRIES SERVICES LIBERALIZATION SERVICES PROVIDERS SERVICES TRADE SHIPMENTS SHIPPING SHIPPING COSTS SPECIALIZATION TARIFF BARRIERS TARIFF REDUCTION TARIFF REVENUE TRADE TRADE TRADE AGREEMENT TRADE BARRIERS TRADE COSTS TRADE IN SERVICES TRADE LIBERALIZATION TRADE NEGOTIATIONS TRADE POLICY TRADE SERVICES TRADE THEORY TRANSPORT COSTS TRANSPORT SERVICES TRANSPORTATION SERVICES TRAVEL SERVICES TRUCKS URUGUAY ROUND VERTICAL SPECIALIZATION WAGES WELFARE EFFECTS WORLD PRICES WORLD TRADE WORLD TRADE ORGANIZATION WTO The author examines the special role that trade liberalization in services industries can play in stimulating trade in both services, and goods. International trade in goods requires inputs from such trade services as transportation, insurance, and finance, for example. Restrictions on services across borders, and within foreign countries add costs, and barriers to international trade. Liberalizing trade in services could also facilitate trade in goods, providing more benefits than one might expect from analysis merely of the services trade. To emphasize the point, the author notes that the benefits for trade are arguably enhanced by the phenomenon of fragmentation. The more that production processes become split across locations, with the fragments tied together, and coordinated by various trade services, the greater the gains from reductions in the costs of services. The incentives for such fragmentation can be greater across countries, than within countries, because of the greater differences in factor prices, and technologies. But the service costs of international fragmentation can also be larger, especially if regulations, and restrictions impede the international provision of services. As a result, trade liberalization in services can stimulate the fragmentation of production of both goods, and services, thus increasing international trade, and the gains from trade even further. Since fragmentation seems to characterize an increasing portion of world specialization, the importance of service liberalization is growing apace. 2014-08-26T19:03:06Z 2014-08-26T19:03:06Z 2001-02 http://documents.worldbank.org/curated/en/2001/02/1121177/international-provision-trade-services-trade-fragmentation http://hdl.handle.net/10986/19703 English en_US Policy Research Working Paper;No. 2548 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	AIRCRAFT AIRLINES APPROPRIATE TECHNOLOGY CARGO CARRIERS COMPARATIVE ADVANTAGE CONSTRUCTION SERVICES CONSUMER SURPLUS CONSUMERS COST SAVINGS COUNTRY OF ORIGIN CURRENCY DEMAND CURVE DOMESTIC FIRMS DOMESTIC MARKET DOMESTIC PRODUCERS DOMESTIC PROVIDERS DOMESTIC REGULATIONS DOMESTIC SUPPLIERS ECONOMIES OF SCALE ECONOMISTS EQUILIBRIUM FACTOR ENDOWMENTS FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL SERVICES FIXED COSTS FOREIGN COMPANY FOREIGN EXCHANGE FOREIGN MARKETS FOREIGN PROVIDERS FOREIGN SERVICE PROVIDERS FOREIGN SERVICES FOREIGN SUPPLIERS FREE TRADE GATS GATT IMPORTING COUNTRY IMPORTS INCREASING RETURNS INCREASING RETURNS TO SCALE INSURANCE INSURANCE INSURANCE COMPANIES INSURANCE SERVICES INTERNATIONAL EXCHANGE OF GOODS INTERNATIONAL TRADE INTERNATIONAL TRANSACTIONS LIBERALIZATION OF TRADE LIBERALIZATION OF TRADE IN GOODS LIBERALIZING TRADE LOADING MARKET ACCESS MULTILATERAL TRADE MUTUAL RECOGNITION NATIONAL SUPPLIERS OPENNESS PRICE OF IMPORTS PRODUCER SURPLUS PRODUCERS PRODUCTION PROCESSES PROFESSIONAL SERVICES PROPERTY RIGHTS PROVISION OF SERVICES RECOGNITION AGREEMENTS SERVICE ACTIVITIES SERVICE PROVIDER SERVICE SECTORS SERVICE TRANSACTIONS SERVICES SERVICES INDUSTRIES SERVICES LIBERALIZATION SERVICES PROVIDERS SERVICES TRADE SHIPMENTS SHIPPING SHIPPING COSTS SPECIALIZATION TARIFF BARRIERS TARIFF REDUCTION TARIFF REVENUE TRADE TRADE TRADE AGREEMENT TRADE BARRIERS TRADE COSTS TRADE IN SERVICES TRADE LIBERALIZATION TRADE NEGOTIATIONS TRADE POLICY TRADE SERVICES TRADE THEORY TRANSPORT COSTS TRANSPORT SERVICES TRANSPORTATION SERVICES TRAVEL SERVICES TRUCKS URUGUAY ROUND VERTICAL SPECIALIZATION WAGES WELFARE EFFECTS WORLD PRICES WORLD TRADE WORLD TRADE ORGANIZATION WTO
spellingShingle	AIRCRAFT AIRLINES APPROPRIATE TECHNOLOGY CARGO CARRIERS COMPARATIVE ADVANTAGE CONSTRUCTION SERVICES CONSUMER SURPLUS CONSUMERS COST SAVINGS COUNTRY OF ORIGIN CURRENCY DEMAND CURVE DOMESTIC FIRMS DOMESTIC MARKET DOMESTIC PRODUCERS DOMESTIC PROVIDERS DOMESTIC REGULATIONS DOMESTIC SUPPLIERS ECONOMIES OF SCALE ECONOMISTS EQUILIBRIUM FACTOR ENDOWMENTS FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL SERVICES FIXED COSTS FOREIGN COMPANY FOREIGN EXCHANGE FOREIGN MARKETS FOREIGN PROVIDERS FOREIGN SERVICE PROVIDERS FOREIGN SERVICES FOREIGN SUPPLIERS FREE TRADE GATS GATT IMPORTING COUNTRY IMPORTS INCREASING RETURNS INCREASING RETURNS TO SCALE INSURANCE INSURANCE INSURANCE COMPANIES INSURANCE SERVICES INTERNATIONAL EXCHANGE OF GOODS INTERNATIONAL TRADE INTERNATIONAL TRANSACTIONS LIBERALIZATION OF TRADE LIBERALIZATION OF TRADE IN GOODS LIBERALIZING TRADE LOADING MARKET ACCESS MULTILATERAL TRADE MUTUAL RECOGNITION NATIONAL SUPPLIERS OPENNESS PRICE OF IMPORTS PRODUCER SURPLUS PRODUCERS PRODUCTION PROCESSES PROFESSIONAL SERVICES PROPERTY RIGHTS PROVISION OF SERVICES RECOGNITION AGREEMENTS SERVICE ACTIVITIES SERVICE PROVIDER SERVICE SECTORS SERVICE TRANSACTIONS SERVICES SERVICES INDUSTRIES SERVICES LIBERALIZATION SERVICES PROVIDERS SERVICES TRADE SHIPMENTS SHIPPING SHIPPING COSTS SPECIALIZATION TARIFF BARRIERS TARIFF REDUCTION TARIFF REVENUE TRADE TRADE TRADE AGREEMENT TRADE BARRIERS TRADE COSTS TRADE IN SERVICES TRADE LIBERALIZATION TRADE NEGOTIATIONS TRADE POLICY TRADE SERVICES TRADE THEORY TRANSPORT COSTS TRANSPORT SERVICES TRANSPORTATION SERVICES TRAVEL SERVICES TRUCKS URUGUAY ROUND VERTICAL SPECIALIZATION WAGES WELFARE EFFECTS WORLD PRICES WORLD TRADE WORLD TRADE ORGANIZATION WTO Deardorff, Alan V. International Provision of Trade Services, Trade, and Fragmentation
relation	Policy Research Working Paper;No. 2548
description	The author examines the special role that trade liberalization in services industries can play in stimulating trade in both services, and goods. International trade in goods requires inputs from such trade services as transportation, insurance, and finance, for example. Restrictions on services across borders, and within foreign countries add costs, and barriers to international trade. Liberalizing trade in services could also facilitate trade in goods, providing more benefits than one might expect from analysis merely of the services trade. To emphasize the point, the author notes that the benefits for trade are arguably enhanced by the phenomenon of fragmentation. The more that production processes become split across locations, with the fragments tied together, and coordinated by various trade services, the greater the gains from reductions in the costs of services. The incentives for such fragmentation can be greater across countries, than within countries, because of the greater differences in factor prices, and technologies. But the service costs of international fragmentation can also be larger, especially if regulations, and restrictions impede the international provision of services. As a result, trade liberalization in services can stimulate the fragmentation of production of both goods, and services, thus increasing international trade, and the gains from trade even further. Since fragmentation seems to characterize an increasing portion of world specialization, the importance of service liberalization is growing apace.
format	Publications & Research :: Policy Research Working Paper
author	Deardorff, Alan V.
author_facet	Deardorff, Alan V.
author_sort	Deardorff, Alan V.
title	International Provision of Trade Services, Trade, and Fragmentation
title_short	International Provision of Trade Services, Trade, and Fragmentation
title_full	International Provision of Trade Services, Trade, and Fragmentation
title_fullStr	International Provision of Trade Services, Trade, and Fragmentation
title_full_unstemmed	International Provision of Trade Services, Trade, and Fragmentation
title_sort	international provision of trade services, trade, and fragmentation
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2001/02/1121177/international-provision-trade-services-trade-fragmentation http://hdl.handle.net/10986/19703
_version_	1764440400301391872

International Provision of Trade Services, Trade, and Fragmentation

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