Trade in Services and Economic Development

Abstract

The services sector in the most important sector for most developing economics. It is the largest contributor to gross domestic product. Production and employment since it is such an important sector developing economics need to identify their comparative advantage in services and potential export markets, Gives the potential for development enhancing and poverty- alleviating trade in services. Including as promoted through in General Agreement on trade in services (GATS) the better integration of developing countries (DCS) in the global services economy should be of priority for government across the world and the international Community as a whole. Developing economics have a comparative advantage in labour services. They have an advance of low and semi-skilled labour that is a major into tourism, construction and transport services. Developing economics can improve their export revenues by specifically identifying these restrictions and where a movement of labour in required, promote the benefits to potential export mare lets of services to trade liberalization. As developing economics remove their restrictions, their services sectors develop, primarily funded by foreign direct investments and they become major exports .A key finding sailing from the modeling simulations is that both developed and developing countries benefit from the services trade liberalization, with the developing countries standing to benefit more than the developed Countries.