Allan Webster

International trade in financial services

International trade in financial services is a topic of some importance both to the financial services sector itself and in international trade negotiations. Unfortunately, intrinsic problems in defining and measuring trade in services, combined with a lack of data in many countries, have made empirical analysis of trade in financial services difficult. Recent improvements in data, although still providing only a limited coverage, do now provide a basis for analysis. In this paper, we use data from the OECD International Trade in Services Statistics 2001 database to conduct an analysis of trade in financial services based on standard theories and empirical techniques for international trade. Our results suggest that the key concepts of international trade are of use in understanding international trade flows in financial services. In particular, we find evidence of significant volumes of intra-industry trade in financial services, as well as significant volumes of inter-industry trade for some countries, including the UK. Using Balassas ‘revealed comparative advantage’ index, the most highly ranked countries are Belgium-Luxembourg, Italy, Switzerland, the UK, the USA and Greece. Using the ‘net export ratio’, the countries that are ranked highest include Germany, Switzerland, the UK, the USA and Belgium-Luxembourg.

Tourism and empirical applications of international trade theory: a multi-country analysis

This paper examines the application of quantitative techniques to further our understanding of international trade theory with respect to tourism flows. The analyses are based on the construction of Balassa and Grubel–Lloyd Indices, as well as the construction of dynamic indices. The results of the analyses suggest that international trade theory has much to offer the study of international tourism flows. Many countries seem to specialize as both exporters and importers of tourism services. The analyses also explore the theoretical assertion that intra-industry trade is likely to be of importance in understanding international tourism flows.

Wage Differentials and Their Determinants in US Tourism and Tourism-Associated Industries:

This paper examines variations in wages for tourism and tourism-associated industries in the USA for the period 2004–2009. It critically assesses the extent to which tourism and tourism-associated activities conform to their low-wage stereotype and finds this to be true in general, but not universally. It then considers the possibility that wages in US tourism and tourism-associated industries can be explained by observable characteristics of these industries. Recent research suggests that the use of wage data at the level of highly detailed occupations is an effective alternative to other ways of capturing underlying skill differences. Accordingly, data from the US Occupational Employment Statistics (OES) were used to provide this detail. The results strongly support the importance of difference in wages between occupations in understanding differences between industries. They also support the importance of a number of industry characteristics, including profitability, multi-factor productivity and demand growth. The paper also considers the relevance of an industry wage premium or discount for tourism and tourism-associated activities in the USA over the same period. It estimates an industry wage model separately for five individual occupations across all industries that employ for the occupation concerned. The analysis shows that workers in the two more highly paid occupations exhibit evidence of a tourism and tourism-associated discount but that workers in the three more lowly paid occupations exhibit a tourism and tourism-associated wage premium.

FDI Determinants in Least Recipient Regions: The Case of Sub‐Saharan Africa and MENA

This paper explores the determinants of foreign direct investment (FDI) into FDI least recipient regions. Panel data for 20 sub†Saharan Africa (SSA) and 11 Middle East and North Africa (MENA) countries are used for the period 2000–12. Findings of the fixed effects estimations suggest that FDI inflows into these regions are influenced by GDP per capita, infrastructure development, trade openness, and control of corruption. Conversely, inflation negatively affects FDI inflows, and rents from natural resources do not significantly influence FDI. Furthermore, the findings show that marginal benefits from any increase in the quantity of FDI determinants (with the exception of control of corruption) will be less for SSA countries. The paper concludes with important policy implications deduced from the findings.

Foreign Direct Investment in Transition Economies of Europe and the Former Soviet Union

This chapter looks at key issues concerning inward foreign direct investment (FDI) in transitional countries from Europe and Central Asia. It considers the important determinants and influences for inward FDI in these economies. A number of key determinants of inward FDI such as market size, natural resource endowments, and institutional quality are considered and found to be of importance. It also examines the contribution of inward FDI to the process of economic transition. The contribution of inward FDI to economic growth is examined. Although the connection between economic growth and inward FDI is more complex than might be expected, evidence does indeed suggest a strong association between the two in transitional countries. Finally, structural change is an important part of the process of economic transition, and in this too inward FDI has at least a significant potential contribution to make.