Service export and economic growth in the selected developing Asian countries

Services trade is regarded as a new source of income, especially for developing countries. Even though services trade only represent 20.2 per cent (2010) to total world trade, interestingly, recent trend shows that the share for developing countries in services trade increased to 32 per cent (2010)...

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Main Authors: Kaliappan, Shivee Ranjanee, Ahmad, Siti Asiah, Ismail, Normaz Wana
Format: Article
Language:English
Published: Faculty of Economics and Management, Universiti Putra Malaysia 2017
Online Access:http://psasir.upm.edu.my/id/eprint/58274/
http://psasir.upm.edu.my/id/eprint/58274/1/%287%29SERVICE%20EXPORT%20AND%20ECONOMIC%20GROWTH%20%282%29.pdf
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author Kaliappan, Shivee Ranjanee
Ahmad, Siti Asiah
Ismail, Normaz Wana
author_facet Kaliappan, Shivee Ranjanee
Ahmad, Siti Asiah
Ismail, Normaz Wana
author_sort Kaliappan, Shivee Ranjanee
building UPM Institutional Repository
collection Online Access
description Services trade is regarded as a new source of income, especially for developing countries. Even though services trade only represent 20.2 per cent (2010) to total world trade, interestingly, recent trend shows that the share for developing countries in services trade increased to 32 per cent (2010) as compared to only 20 per cent in 1990. Moreover, the share of service export to total exports also increased from 18 per cent in 1990 to 30 per cent in 2010. Although, most of the developing countries are still net importers of services, there is a widespread belief among scholars and policy makers that there is great potential for services exports to grow further as new source of income for developing countries. Thus, the main purpose of this study is to examine the impact of service export on economic growth using panel dynamic OLS (DOLS) in selected Asian countries (i.e. China, Hong Kong, South Korea, India, Iran, Indonesia, Malaysia, Philippines, Singapore, Thailand, Kuwait, Saudi Arabia and Turkey). Annual data covering the period from 1985 to 2012 was utilized. The findings indicate that all of the macroeconomic variables tested are co-integrated in the long run. Service export also has a significant and positive impact on economic growth. The findings implies that the Asian developing countries should focus on formulating appropriate policy measures to enhance the performance of services sector and service export to stimulate the economic growth.
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spelling upm-582742018-01-04T09:38:09Z http://psasir.upm.edu.my/id/eprint/58274/ Service export and economic growth in the selected developing Asian countries Kaliappan, Shivee Ranjanee Ahmad, Siti Asiah Ismail, Normaz Wana Services trade is regarded as a new source of income, especially for developing countries. Even though services trade only represent 20.2 per cent (2010) to total world trade, interestingly, recent trend shows that the share for developing countries in services trade increased to 32 per cent (2010) as compared to only 20 per cent in 1990. Moreover, the share of service export to total exports also increased from 18 per cent in 1990 to 30 per cent in 2010. Although, most of the developing countries are still net importers of services, there is a widespread belief among scholars and policy makers that there is great potential for services exports to grow further as new source of income for developing countries. Thus, the main purpose of this study is to examine the impact of service export on economic growth using panel dynamic OLS (DOLS) in selected Asian countries (i.e. China, Hong Kong, South Korea, India, Iran, Indonesia, Malaysia, Philippines, Singapore, Thailand, Kuwait, Saudi Arabia and Turkey). Annual data covering the period from 1985 to 2012 was utilized. The findings indicate that all of the macroeconomic variables tested are co-integrated in the long run. Service export also has a significant and positive impact on economic growth. The findings implies that the Asian developing countries should focus on formulating appropriate policy measures to enhance the performance of services sector and service export to stimulate the economic growth. Faculty of Economics and Management, Universiti Putra Malaysia 2017 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/58274/1/%287%29SERVICE%20EXPORT%20AND%20ECONOMIC%20GROWTH%20%282%29.pdf Kaliappan, Shivee Ranjanee and Ahmad, Siti Asiah and Ismail, Normaz Wana (2017) Service export and economic growth in the selected developing Asian countries. International Journal of Economics and Management, 11 (2). pp. 393-418. ISSN 1823-836X http://www.ijem.upm.edu.my/vol11_no2/(7)SERVICE%20EXPORT%20AND%20ECONOMIC%20GROWTH%20(2).pdf
spellingShingle Kaliappan, Shivee Ranjanee
Ahmad, Siti Asiah
Ismail, Normaz Wana
Service export and economic growth in the selected developing Asian countries
title Service export and economic growth in the selected developing Asian countries
title_full Service export and economic growth in the selected developing Asian countries
title_fullStr Service export and economic growth in the selected developing Asian countries
title_full_unstemmed Service export and economic growth in the selected developing Asian countries
title_short Service export and economic growth in the selected developing Asian countries
title_sort service export and economic growth in the selected developing asian countries
url http://psasir.upm.edu.my/id/eprint/58274/
http://psasir.upm.edu.my/id/eprint/58274/
http://psasir.upm.edu.my/id/eprint/58274/1/%287%29SERVICE%20EXPORT%20AND%20ECONOMIC%20GROWTH%20%282%29.pdf