Trade in services

Abstract

The service sector has witnessed a significant increase in cross-border trade and investment flows. This globalisation has been driven by a variety of factors, including advances in information and communication technology, rising income levels and associated increases in the demand for services, opening up and deregulation of many services permitting the entry of domestic and foreign private providers, and demographic imbalances between countries. Globalisation of services has in turn provided countries with new development opportunities and with new avenues for realising economic and welfare gains, but it has also thrown up many challenges and dilemmas for governments and international institutions. This chapter pulls together the body of existing and emerging work on the globalisation of services and its implications for development.