Impact of service trade liberalization on economic growth

Abstract

This paper has attempted to empirically examine the impact of service trade liberalization on the economic growth by using a country-level panel data. Trade in services is currently holding the substantial portion of the world’s trade and a great number of world's labor force has been participating in the sectors of service. Economic effects of service trade liberalization has obtained substantial attention as service trade liberalization has the potential to increase the global economic growth. We employ an annual country-level panel data of 189 countries/regions from 2000 to 2018 and estimate our econometrical models with fixed-effect model. The results approved the positive and promising impact of trade in service liberalization on the economic growth of the countries. Besides, human capital along with the trade in services liberalization has a positive impact on the growth of the economies.