Question

What does the empirical evidence from the literature say about the impact of trade in services (especially in financial services, telecommunications and transport) on economic growth? need answer in minimum of 250-300 words  

Answer 1

Trade in financial services have brought in a positive impact on the economic growth.The trade in financial services has led to the openness of financial services and the stock market,insurance market and the bond were included in the system and this has bought a positive impact on the economic growth.The trade in financial services has made the business transactions of the exporters and importers more easier through the trade.Trade in telecommunications have also boosted the economic growth.Due to the trade in telecommunication services there was increase in the economic growth and as a result greater proportion of the national income was spent on the telecommunications sector and this further stimulated the trcommunication investments.Due to the increased trade in telecommunication services it has created more job opportunities in the economy .Trade in telecommunication services has also increased the productivity of the economy and increased the growth rate and GDP per capita of the economy.Trade in transport implies the development of the international transport.The trade in transport made exchange and flow goods and service between the countries more easier.The transport investment facilities also improved due to the improved trade on transport .Due to the trade in transport it helped in broadening the market for the goods and helped the movement of raw materials,fuel etc which are very essential for the production more easier.Due to the increase in investment in transport facilities it also increased the demand for motor vehicles,ships etc. and this led to the emerging of new industries which produced these goods.Thus to conclude the trade in services has bought a positive impact on the economic growth.