Xuepeng Liu

Kennesaw State University
1000 Chastain Rd
Kennesaw, GA 30144

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Institutional Affiliation: Kennesaw State University

NBER Working Papers and Publications

December 2019Services Development and Comparative Advantage in Manufacturing
with Aaditya Mattoo, Zhi Wang, Shang-Jin Wei: w26542
Most manufacturing activities use inputs from the financial and business services sectors. But these services sectors also compete for resources with manufacturing activities, provoking concerns about deindustrialization attributable to financial services in developed countries like the United States and United Kingdom, and business services in developing countries like India and the Philippines. This paper examines the implications of services development for the export performance of manufacturing sectors. We develop a methodology to quantify the indirect role of services in international trade in goods and construct new measures of revealed comparative advantage based on value-added exports. We show that the development of financial and business services enhances the revealed comparativ...

Published: Xuepeng Liu & Aaditya Mattoo & Zhi Wang & Shang-Jin Wei, 2020. "Services development and comparative advantage in manufacturing," Journal of Development Economics, . citation courtesy of

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