Determinants of Trade in Services

  • Nikita Joshi Symbiosis School of Economics, Senapati Bapat Rd, Pune, Maharashtra 411004, India
  • Assist. Prof. Dr. Ishita Ghosh Symbiosis School of Economics, Senapati Bapat RoaSymbiosis School of Economics, Senapati Bapat Rd, Pune, Maharashtra 411004, Indiad, Pune – 411004, Maharashtra, India
Keywords: panel data, gravity model, foreign trade

Abstract

This paper aims to analyze the determinants affecting the trading of services and examine the causality between the trading of services and the factors affecting the trade. For the study, the fixed effects panel data regression has been used. The results indicate that as the income of a country increases, its trade in services also increases. The use of the internet and mobile phones are also important indicators of trade in services and an increase in their use reduces the cost of trading services.  Free trade agreements play an important role in developing countries like Brazil and China for trading services.

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Published
2021-07-04
How to Cite
Joshi, N., & Ghosh, I. (2021). Determinants of Trade in Services. Mednarodno Inovativno Poslovanje = Journal of Innovative Business and Management, 13(1), 72-78. https://doi.org/10.32015/JIBM/2021.13.1.72-78
Section
Original article