Journal of Industry, Competition and Trade

, Volume 8, Issue 3–4, pp 181–197 | Cite as

Trade in High-Tech Services



This paper examines the size, scope, and potential implications of trade in high-tech services in the U.S. The results suggest that many service activities are tradable, tradable service activities tend to employ more educated workers and pay higher wages, and high-tech services account for a large share of service activities that are tradable. Service exporters are more prevalent in high-tech industries with larger establishments and higher wages. Within industries, service exporters tend to be larger, pay higher wages, and are more productive. Tradable service activities seem consistent with U.S. comparative advantage and, as a result, less likely to be vulnerable to offshoring. Consistent with this, recent employment growth in tradable service industries is not significantly different than employment growth in non-tradable service industries.


trade in services offshoring outsourcing employment 

JEL Classification

F14 F16 L84 L86 


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Copyright information

© Springer Science+Business Media, LLC 2008

Authors and Affiliations

  1. 1.McDonough School of BusinessGeorgetown UniversityWashingtonUSA
  2. 2.Peterson Institute for International EconomicsWashingtonUSA
  3. 3.NBERCambridgeUSA

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