FDI and Trade in Services Towards Sustainable Economic Growth

The paper empirically investigates the inter-linkage between FDI inflow and international trade in service sector in India. Service sector emerges as the fastest growing sector worldwide during current phase of globalization, contributing more than 60 percent of output and almost 35 percent of trade in global economy. The sector also accounted for 63 percent of global stock of FDI. With hosting a large amount of FDI inflow, Indian service sector is also identified globally due to its substantial improvement in growth and export in international market. So there needs a study to explore the theoretically established causal relationship between FDI inflow and international trade in services towards sustainable and service led economic growth in India. The authors collect monthly data from DIPP, Government of India and RBI over a globally witnessed emerging period from January 2009 to June 2016 and apply ADF and PP unit root tests followed by least square estimation after testing the seasonal effects. Their findings imply unidirectional causality between FDI inflow and export Indian services.

The article substantiates the determining influence of four basic factors of international trade: natural and geographical differences between states; differences in production costs in different countries; the effect of the country's specialization in the production of the good with a greater relative advantage; the effect of the scale of production, and the corresponding theories. All other "reasons for international trade" discussed in numerous publications are at best only modified basic ones. Likewise, these theories can be applied to the analysis and forecasting of international trade in services, particularly in the field of tourism, which is relevant for the post-pandemic development of the countries of the world. Unlike international trade in goods, which recovered in 2021-2022 thanks to strong consumer demand for products, especially in advanced economies, supported by government fiscal stimulus measures, trade in services is recovering at a slower pace. Instead, the uneven distribution of vaccines, the emergence of new COVID-19 stamps and non-tariff restrictions continued to hamper the recovery of tourism and passenger transport in the service sector. Thus, trade in commercial services grew by 16% in 2021, which is 5% below the pre-pandemic level. Accordingly, the problems of the study of international trade in services, in particular tourist services, require thorough research. The existence of four reasons determines the possibility of 15 variants of types of international trade for an individual country or between any two countries. None of the four reasons for international trade is sufficient for its emergence, since only the reduction of the "resistance of distance" in the conditions of the existence of at least one reason for international trade activates its potential. Since the international trade in services needs the basis of scientifically determined approaches to its development between countries and regions in the cross-border dimension, this article presents the main scientific aspects of the theories of international trade and makes proposals for their practical implementation in solving the problems of international trade in tourist services.

During last years, we can mention the increasing role of the services sector in the global economy. The share of services in gross domestic product (GDP) for most countries exceeds 50%, which demonstrates the importance of this sector in economic development and competitiveness of national economies. Interaction on liberalization of trade in services and domestic markets protection plays an important role in international trade negotiations, particularly within the framework of the World Trade Organization (WTO). At the same time, there are a growing number of regional trade agreements (RTAs), which reduces barriers to trade in services between the participating countries.The goal of article is to determine the characteristics of institutional frameworks of international services trade in world economy.The special dynamics of international trade in services and its growing importance for economic development of countries makes more actual the additional research questions about institutional support international services trade. Today not enough attention is paid to the complex investigation to international trade in services regulation at two levels – global (based on mechanisms of WTO) and regional – throughh the use of regional trade agreements instruments.Today, the service sector in terms of development far exceeds the sphere of material production, which, in turn, is a powerful incentive to gain new competitive advantages in the global market. In the last two decades in the international services market clearly revealed the following trends in its development. Thus, it should be noted the growth of information and computer services sector in the structure of international trade in services resulting from innovation in this field. There is the tendency to dominance of developed countries in international trade in services, which are leading both in terms of exports and imports of services; however, their share of yearly decreases against the background of strengthening the position of developing countries in the international services market through their active involvement in international trade.The importance of regional integration processes is one of the features of trade policy in a globalizing world economy. Currently, most of all RTAs include provisions concerning international trade in services, although most universal mechanism for regulating international exchange services is still GATS rules. However, in practice, the mechanism used GATS relatively low, and the reason why may be that part of the trade in services liberalization carried out autonomously countries. As part of the trade preferential agreements much easier to reach agreements on the liberalization of trade in services for individual conditions will be more beneficial for these countries than in the conditions specified under the GATS.For the current competitive environment, regional trade agreements are an additional tool for liberalization, which is the basis of ideology WTO system. The processes of regional integration in international trade in services today are one of the signs of the global community. Strategy of most developing countries’ growth is the services sector providing as one of the main activities of the gradual liberalization.

The General Agreement on Trade in Services (GATS) is one of the World Trade Organization's most important agreements. This accord is the first and only set of multilateral rules covering international trade in services. It is a framework for international trade in services and a legal basis for resolving conflicting national interests. For the past two decades, trade in services has grown faster than merchandise trade. Currently, they represent more than two thirds of the World Gross Domestic Product. As the term services covers a wide range of intangible and heterogeneous products and activities, there has been an increasing demand for detailed, relevant and internationally comparable statistical information on trade in services. In the last ten years, the share of transportation services in international trade in commercial services was steady and amounted to about one quarter.

International trade in financial services is a topic of some importance both to the financial services sector itself and in international trade negotiations. Unfortunately, intrinsic problems in defining and measuring trade in services, combined with a lack of data in many countries, have made empirical analysis of trade in financial services difficult. Recent improvements in data, although still providing only a limited coverage, do now provide a basis for analysis. In this paper, we use data from the OECD International Trade in Services Statistics 2001 database to conduct an analysis of trade in financial services based on standard theories and empirical techniques for international trade. Our results suggest that the key concepts of international trade are of use in understanding international trade flows in financial services. In particular, we find evidence of significant volumes of intra-industry trade in financial services, as well as significant volumes of inter-industry trade for some countries, including the UK. Using Balassa's ‘revealed comparative advantage’ index, the most highly ranked countries are Belgium-Luxembourg, Italy, Switzerland, the UK, the USA and Greece. Using the ‘net export ratio’, the countries that are ranked highest include Germany, Switzerland, the UK, the USA and Belgium-Luxembourg.

1. The Rise of Services: Some Factual and Theoretical Perspectives. Introduction. Services: Definition and Classification. The Recent Expansion of Services. Explanations for Growth. Understatement of Role of Services. 2. The Tradability of Services. TRadable and Non--Tradable Services. Information Technology and Tradability of Services. Transport Technology and the Tradability of Services. Service Multinationals and the Tradability of Services. Case Studies of the Development of Service MNEa S. Retail Internationalisation. Government Influences on the Tradability of Services. Changes in Consumer Requirements and Expectations. 3. International Trade and Foreign Direct Investment in Services. Introduction. Measuring Trade in Services. An Outline of Global Trade in Services. The Role of Comparative Advantage. Foreign Direct Investment in Services. International Trade in Services and the Developing Countries. Developing Country Service MNEa s. Eastern Europe, the Commonwealth of Independent States and International Trade in Services. Liberalizing International Trade in Services. 4. Services and the Global System of Cities. Services and the Global Urban System: Some Explanations. Services and Cities in the Global Urban System. Services and the Global Urban System: Some Examples. 5. Internationalization of Services and Restructuring of Cities. Services and Employment Restructuring in Large Metropolitan Areas: Some Comparisons. Impacts on the Urban Property Market: Offices. Changes in the Location of Services Within Cities. 6. Services in the World Economy: Some Reflections. Services in the 1990s: Victims of the Decade of Optimism?. Service--Dominated Economies: How Desirable?. Is the Globalization of Services inevitable?. Unfulfilled Potential of Telecommunications?. References. Further Reading. Bibliography. Index.

In the winter of 1996, Canada's third largest financial institution, the Bank of Montreal, launched a now infamous advertising campaign in which it asked the question: Can a bank change? While the resulting ads naturally responded in the affirmative, many other large financial institutions were asking themselves the same question. The dramatic acceleration since the mid-to-late 1980's of the rate at which banks are establishing branches and/or investing in financial institutions outside of their home markets combined with the dismantling by governments around the world of many traditional regulatory restrictions is resulting in the re-making of the financial services industry in its entirety. Central to this process has been a wave of mergers and alliances, many of which increasingly cut across the classical sectoral sub-divisions (commercial banking, securities, insurance etc.). The end result has been the gradual emergence of singular financial amorphisms capable of offering any service globally. In addition to these structural changes, an important result of this wave of mergers, alliances and foreign investment has been that financial institutions have become global players in terms of market presence, rather than just loan portfolios. This, in turn, has meant that the volume and importance of international trade in financial services has substantially increased in recent years. As the international trade of financial services has developed, governments have sought to establish a framework of rules to govern it. However, this process has not occurred in a vacuum. Over the past 15 years, international trade in goods has become substantially freer, international trade in services (of which financial services constitute a part) has grown dramatically, and international capital flows have become more open. While volumes have been written about both international trade in goods and international capital flows and a burgeoning literature exists on trade in services, comparatively little has been written specifically about international trade in financial services. This paper is designed to help fill this void. The core of the paper consists of three specific cases: (1) the Canada-United States Free Trade Agreement (CUSFTA); (2) the North American Free Trade Agreement (NAFTA); (3) the World Trade Organization (WTO) Agreement on Trade in Financial Services. These selections constitute a logical progression. The CUSFTA was the first trade agreement ever to include provisions on financial services. The NAFTA, negotiated shortly thereafter contains the most far-reaching provisions in the world in this area. Finally, the WTO Financial Services Agreement marks the first time that such disciplines have been successfully negotiated on a global level. In order to make an examination of an Agreement consisting of 56 different schedules possible, this section will focus on the commitments of a number of sample countries in a specific region of the world, namely Latin America.

The article examines the features of the impact of the coronavirus pandemic on international trade in services. International trade in services is an area that is developing extremely dynamically, in particular, there is a trend of informatization of services and their virtualization. Increasingly, the provision of services is becoming cross-border and taking place in cyberspace due to the development of information and telecommunications. The current state of peculiarities of Ukraine's foreign trade relations in the sphere of services is revealed. A characteristic aspect of international trade is the extraordinary development in the context of globalization and integration processes. The problematic aspects of the impact of the coronavirus pandemic on international trade in services are highlighted. It is determined that the study of the impact of the coronavirus pandemic on international trade in services is especially relevant. It is determined that international trade in services is an area that is developing extremely dynamically, and under the influence of the coronavirus pandemic, in 2020 there was a sharp decline in international trade, the most significant decline occurred in the second quarter of 2020. Ukraine’s position on the world market as a competitive entity that needs to strengthen and improve its position on international trade in services is highlighted. Important factors that influence the development of international trade in services are described. It has been determined that trade in services can be considered a component of world trade, which is most affected by the coronavirus due to the establishment of transport and tourism restrictions, the closure of many retail outlets and hotels. It is considered how individual entrepreneurs try to continue to work in quarantine without violating it, and rise in the field of online services. It has been determined that in Ukraine, ill-considered steps by the authorities through the coronavirus could trigger a social explosion among workers in the service sector and other industries, which will have much more devastating consequences for Ukraine than a pandemic. The forecasts for the recovery of Ukraine after the COVID-19 pandemic are described.

This study used gravity modelling to examine the impact of religion on international trade in goods and services. The Poisson pseudo-maximum likelihood estimator was used to correct for the presence of heteroscedasticity, and religion-related dummy variables were incorporated to investigate the relationship between religion and trade. The results indicate that religion creates positive institutional and network effects, increasing international trade in goods and services; these effects enhance trade in services more than trade in goods; institutional effects exert a greater trade-creating effect than deliberately designed institutional regimes, but a lesser effect than historically established cultural regimes, such as common language and colonial ties; network effects on trade in services, although less significant than common language and colonial ties, promote trade to nearly the same degree as regional trade agreements and shared legal systems. Religion establishes co-religious networks that positively affect interpersonal trust, thereby reducing institutional distances between countries. This effect is similar to that of trading diaspora.

Despite its substantial and increasing importance to health systems and inclusive economic growth, the relationship between international trade in services and health worker mobility has been largely unexplored. However, international health worker mobility and trade in services have both been increasing rapidly, and at a growing pace in recent years. Trade in services frameworks (global, regional, bilateral) are an important vehicle for health worker mobility. In this paper we analyse the commitments made in the context of the General Agreement on Trade in Services (GATS) and regional and bilateral trade agreements that cover services. Although there is room for more and deeper commitments, undertakings related to health worker mobility are already made in many trade agreements, with commitments more numerous and deeper in the regional and bilateral agreements than in the context of GATS. In addition, trade in services frameworks contain flexibility to strengthen and advance ethical health worker mobility, in accordance with the principles and recommendations of the WHO Global Code of Practice on the International Recruitment of Health Personnel. A strengthened collaboration between health and trade stakeholders could therefore serve to significantly expand sustainable development worldwide. There is potential for health stakeholders to strategically leverage trade dialogue and agreements to meet health system needs. Building on available tools, trade in services could help address the concerns of the health sector by ensuring that health worker mobility can respond to worldwide demand, while explicitly addressing health systems concerns across countries.

Vlasenko I.H., Sirenko S.O. FOREIGN TRADE IN SERVICES OF UKRAINE AND THE EU: PROBLEMS AND PROSPECTS Purpose. The aim of the article is to study the dynamics of foreign trade in services and outline promising directions for the development of Ukraine's service sector on the path to European integration. Methodology of research. General scientific and special methods were used in the research process: induction and deduction – at the stage of collecting, systematizing and processing information, to identify trends in Ukraine's foreign trade in services, cause-and-effect relationships in the emergence of problems in international trade in services with EU countries, as well as to predict possible prospects; analysis and synthesis – to identify the main trends in the development of international trade; abstract and logical – to summarize information from various sources and create a comprehensive understanding of the problem under study, form theoretical conclusions and generalizations; graphic – to visualize the results of the study. The study was conducted based on materials from the State Statistics Service of Ukraine. Findings. It is shown that during 2021-2023, Ukraine's exports of services decreased. It was found that a significant drop in exports, as well as imports of services, was observed with the beginning of the full-scale invasion of the Russian Federation into the territory of Ukraine, although during 2021-2023, a positive balance of foreign trade in services was observed. Our country has a great interest in foreign trade with the countries of the European Union in general and in trade in services in particular. It is shown that in 2023, 40% of exports of services and 43% of imports were to the EU. The structure of exports of services in 2023 by Ukraine to the countries of the European Union was analysed. It was established that the largest number of services were exported in the field of telecommunications, computer and information services. Also, a significant share of total exports of services to EU countries belongs to transport services, services for the processing of material resources, business services, and services related to financial activities. It is proven that in the future the services market will develop at an ever-increasing pace, which is due to the establishment of new and expansion of existing ties in the field of trade in services between states, as well as associations of states; improvement of cultural exchange processes between countries, and development of trade in technological and intellectual services. Originality. The understanding of the trends of the modern world in international trade in services has been improved. The perception of significant risks that may pose a threat to the development of the global services market has gained further developed. It has been established that in the future the services market will develop at an increasing pace. Practical value. Having analysed the structure of trade in services between Ukraine and the EU and understanding the trends of the modern world towards the consumption of certain services, it is possible to focus efforts on the development of industries that are in demand in the services market, which will allow not only to be successful in competition, but also to become a factor in ensuring economic development. Key words: foreign trade, services market, export of services, import of services, structure of export of services, competitiveness of the service sector.

Trade in services plays an increasingly important role in international trade, and the comprehensive competition of international trade in services is getting more fierce. As a new model of service trade, cruise tourism has been a new choice to meet people's needs for a good life. Cruise consumption has been a new economic growth engine, and the cruise market has been a window for Shanghai to further open up and deepen international cooperation. Cruise operation has been an important bond to connect the Yangtze River Delta, the Belt and Road, and the Yangtze River Economic Zone. The cruise industry is an important manifestation of Shanghai being a good vanguard of reform and opening-up and innovative development nationwide. As the cruise economy develops fast, Shanghai continues to encourage cooperation with port cities that are well-developed in the trade in cruise services. By further developing the trade in cruise services, innovating trade in services, promoting new businesses and modes of trade in cruise tourism services, Shanghai has gradually cultivated trade in international cruise tourism services into a new growth engine for its international trade in services. During the course of consumption upgrading and continuous growth of the macro economy, Chinese residents' ability to spend on tourism is much improved. Confidence in Chinese economic and social development is increasing, and Chinese people have more need for cruise tourism, offering development opportunities for trade in cruise tourism services.

In this paper I present an overview of international trade in financial services. Though often intangible and invisible, trade in services is important, accounting for almost a fifth of total world trade in 2000; and trade in services has been growing in both absolute and relative terms, thoughgrowth was more rapid in the 1980s than in the 1990s. The international negotiating framework for reducing barriers to trade in services the General Agreement on Trade in Services (GATS) came into existence in 1995, as part of the World Trade Organization (WTO). The GATS has thus far had only limited success in achieving reductions in barriers to trade in services, though a negotiating round among member countries is currently under way. This slow progress is largelydue to the extensive national regulation that frequently surrounds services and the entry (and trade) barriers that are often part of that regulation. The structure of the GATS document itself, as well as the WTO's post-Seattle defensiveness, reflects the political sensitivity of these national regulatory issues; but this sensitivity, unfortunately, has impeded progress in reducing trade barriers.

This paper illustrates the main trends in international trade in services during the last two decades of the last century, focusing particularly on developing and transition countries. The Introduction briefly exposes some of the shortcomings and methodological problems affecting statistics on international trade in services, and explains why BOP data, albeit inadequate, are the only source available so far to carry out a comprehensive comparative and historical analysis in this domain. Section 2 describes basic trade trends for each of the 10 services sectors, identifies the major exporters of services among developing and transition countries and analyzes the evolution of their relative position in international trade in services. It shows that most of them are either large semi-industrialized Asian countries or European transition countries. Yet, there are also cases of other developing countries exhibiting a strong tendency towards specializing in one or few specific services sub-sectors. Section 3 examines global trade trends for services as a whole. They show that services exports have been the most dynamic component of world trade and the world market share of developing countries has been on the rise. However, a generalized deceleration in the expansion of world trade in services occurred in the late 1990s. The growth rate of services exports from developing countries slowed down, and their ability to import services also declined, with a negative impact on their development prospects. In the Conclusions, a tentative explanation for the aforementioned results is proposed. Most export-oriented services activities in developing countries are concentrated in traditional services sectors. They are also poorly integrated to the rest of the domestic economy. Thus, their potential as engines for growth is relatively weak. The weight of these

In this article, we study the short- and long-run effects of trade openness in services on wage inequalities. The sample covers ten Organization for Economic Cooperation and Development (OECD) countries from 1980 to 2005. We find a differentiated impact of trade in goods compared to trade in services: while trade in goods has a short- and a long-run impact on inequalities, trade in services has only long-run effects. Moreover, we also find that international trade in services has a stronger impact on inequalities than international trade in goods, and this effect does not concern only inequalities between top incomes and low incomes but also between top incomes and median incomes.