Abstract
Discussion in the previous chapters has shown that as developing countries fully exploit their potential comparative advantage in specific services and increase their participation in trade in service, the global economy gains from a more efficient use of the available resources, and all trading partners, including the industrial countries, can benefit. Beyond the initial efficiency gains, industrial countries should benefit from increased investment — as a result of higher returns to investment and, possibly, from innovation and higher productivity growth.
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Notes and references
The World Bank, Global Economic Prospects and the Developing countries (Washington, DC: World Bank, 1995).
Ibid. The ratios in question are based on the experience of transnational corporations in the manufacturing sector. The ratio of total employment in foreign affiliates of transnationals originating in G-7 countries to total manufacturing employment in the home country is in the 10–30 range (Geneva: UNCTAD, 1994, World Investment Report: Transnational Corporations, Employment and the Workplace). The value of the potential market for developing countries is derived from the number of outsourced jobs multiplied by the expected wages. In the light of survey results showing that companies seriously consider outsourcing when cost savings reach 30 to 40 per cent, expected wages were assumed to be two-thirds of those in the respective G-7 countries.
See M. Sobol and Uday Apte, ‘Outsourcing Practices and Views of Efficient IS Users: An Empirical Study’. Working Paper 95-01-01, (Southern Methodist University, Dallas, Texas, 1995). The value of developing countries’ long-distance services exports will be even higher when the value added to wages over time is taken into account.
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© 1997 International Organization for Migration
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Ghosh, B. (1997). Services, Trade-related Temporary Movements and Migration Management: Some Concluding Remarks. In: Gains from Global Linkages. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-25422-4_7
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DOI: https://doi.org/10.1007/978-1-349-25422-4_7
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