The IMF Working Papers series is designed to make IMF staff research available to a wide audience. Almost 300 Working Papers are released each year, covering a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and national and international economic developments.
Prakash Loungani, Saurabh Mishra, Chris Papageorgiou, and Ke Wang
INTERNATIONAL MONETARY FUND
Using a newly constructed dataset on trade in services for 192 countries from 1970 to 2014,
this paper shows that services currently constitute one-fourth of world trade and an
increasingly important component of global production. A detailed analysis of patterns and
stylized facts reveals that exports of services are not only gaining strong momentum and
catching up with exports of goods in many countries, but they could also trigger a new wave
of trade globalization. Research applications of the trade in service dataset on structural
transformation, resilience, labor reallocation, and income distribution are outlined.