Determinants of Trade in Services
DOI:
https://doi.org/10.32015/JIBM/2021.13.1.72-78Keywords:
panel data, gravity model, foreign tradeAbstract
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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