The servicification of trade

Author

Shanella Rajanayagam

Date published

16 December 2016

Downloads

Servicification of trade Dec 2016 [523 KB PDF]

Services play an important and growing role in international trade. They are an important export earner for New Zealand – representing 29% of our total exports on a gross basis. Today, however, services are not only traded across borders on their own but are also combined with goods exports (ie, embedded services) and are critical inputs in the production process of exported goods (i.e. embodied services). When the contribution of embodied services to New Zealand’s exports is considered, the share of services in New Zealand’s exports rises substantially to 57% – above the OECD average. This trend toward the increasing “servicification” of manufacturing has important implications for how trade policy and domestic regulation are crafted.

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