TRADE IN SERVICES

Authors

  • Andreas Förster Dresden University of Technology,

Keywords:

High-skilled and low-skilled workers, liberalization, off-shoring, trade barri¬ers, trade in services, wages.

Abstract

Trade in services differs from trade in physical goods. This article high­lights some effects of liberalization of trade in services, especially the effects of off-shoring. Many Western European companies settle new branches in Eastern European countries, and this process is known as «off-shoring». This is a new phenomenon discussed in the Western European press, particularly its effects on the labour market. But off-shoring does not only create unemployment in the country where branches were closed. Off-shoring can lead to adjusted wages in the off-shored-sector: after a decline of wages, they can rise again.

References

Banga, R.: Trade in Services: A Review, Global Economy Journal, Vol. 5, Issue 2, Article 3, 2005.

Bernanke, B., R. Frank: Principles of Macroeconomics, 3rd edition, 2006.

Bryson, J., P. Daniels, B. Warf: Service Worlds, 2004.

Deardorff, A.: International Provision of Trade Services, Trade and Fragmentation, Review of International Economics, 9(2), 233–248, 2001.

Grossman, G., E. Rossi-Hansberg: Trading Tasks: A Simple Theory of Offshoring.

Hoeckman, B., P. Sauvé: Liberalizing Trade in Services, World Bank Discussion Papers Nr. 243, June 1994.

WTO: International Trade Statistics 2005, World Trade Organization, Geneva, 2005.

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Published

27.06.2017

How to Cite

Förster, Andreas. “TRADE IN SERVICES”. Journal of European Economy, vol. 7, no. 1, June 2017, pp. 102-7, https://jeej.wunu.edu.ua/index.php/enjee/article/view/181.

Issue

Vol. 7 No. 1 (2008): JOURNAL OF EUROPEAN ECONOMY

Section

FINANCIAL AND BANKING SERVICES MARKET

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