DETERMINANTS OF TRADE IN SERVICES: A PANEL DATA ANALYSIS OF EMERGING ECONOMIES

Existing literature clearly indicates that emerging economies in Asia and Africa have shown robust economic growth during the global economic recession of 2007-08. The resurgence of emerging economies particularly from Asia and Africa can be attributed to effective trade liberalization measures. Against this background the present study makes an attempt to analyse the factors that determine trade in services in emerging economies. The Panel data analysis is based on 35 emerging economies for a period of 2005-2019. The study reveals that trade in goods and Gross Domestic Product influences trade in services in emerging economies. The study strongly recommends collaborative efforts by emerging economies to liberalize their trade in goods and services so as to reap the maximum benefits from international trade. A comprehensive policy network involving trade, financial and economic reforms would enable emerging economies to improve their economic growth rate leading to prosperity of the region