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- W1547856434 abstract "1. IntroductionApart from being the main source of growth and employment in most economies, services are major contributors to global trade, either as trade in services per se or in their role of facilitating trade in goods or through their incorporation as intermediate inputs into the production of goods. More importantly, services play an essential role in global value chains (GVCs) controlled by transnational coiporations (TNCs), which are nowadays the dominant form of organizing global production, investment and trade. Indeed, 80% of global trade in goods and services now takes place within GVCs (UNCTAD, 2013a, p.135). These are effectively global factories, through which TNCs locate different stages of the production process in the world's most cost-efficient locations through a network of independent suppliers and their own affiliates. Within GVCs, services are coordinating the different stages of production dispersed worldwide, ensuring the effective movement of parts and components across national borders and facilitating trade in goods within these networks. Without services, GVCs could not function. Hence, it should not come as a surprise that two thirds of global FDI stocks is allocated to services (UNCTAD, 2013a, p. 135).Notwithstanding the global financial and economic crisis, world trade in services has increased dramatically over the past decade, rising over threefold since 2000 to reach S4.6 trillion in 2013 (WTO, 2014). As many types of services (such as transport, financial services, insurance, etc.) are inextricably linked to trade in goods, the two categories of trade flows evolved closely over time and outpaced growth in global production. The share of services in total world trade in goods and services remained relatively unchanged at around 20% since the 1990s, when measured on the basis of balance of payments statistics. But, if measured in value-added terms, almost half (42%) of valueadded in world exports is contributed by services (WTO, 2013, p. 82).The steady expansion of trade in services, its relative resilience in the recent crisis, its important role in GVCs and its increasing potential in attracting investment and employment provides new opportunities for countries'growth and integration into the global economy. This has led many countries across the world - both developed and developing ones - to factor services trade into their post-crisis national growth strategies. Seizing the opportunities for increased services exports is one of the key focuses of the EU's trade policy. Likewise, the United States has listed promotion of services exports as one of the priorities of its national export initiative. It is also noteworthy, that in its twelfth five-year plan (2011-2015), China has set a goal for the share of GDP of the services industry to increase from 43% to 47% and for import and export of services to reach S600 billion (UNCTAD, 2013b, p. 8). But many other developing countries have targeted promotion of services exports as a major policy focus. The growing relevance of services trade for development is reflected by numerous success stories that point not only towards India with its well-known software and business services export-led growth, but also numerous developing countries (e.g. Kenya, Bangladesh, Costa Rica, etc.), that have grabbed the opportunities arising from services globalization to specialize in certain services niches and enter into GVCs.Against this background, the paper examines the main trends that have shaped Romania's trade in services in the pre- and post-crisis years. Its purpose is to explore, through the lens of services trade flows, whether the country advances - or fails to advance - in integrating into the world economy and reaping the benefits from the ongoing services globalization. The paper relies on balance of payments statistics provided by the National Bank of Romania and Eurostat, that are complemented by new dataset on trade in value-added developed jointly by OECD-WTO. …" @default.
- W1547856434 created "2016-06-24" @default.
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- W1547856434 date "2014-01-01" @default.
- W1547856434 modified "2023-10-18" @default.
- W1547856434 title "Integrating into the Global Economy through Services. the Case of Romania" @default.
- W1547856434 hasPublicationYear "2014" @default.
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