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1、InternationalTradeinServices:IssuesandConceptsDesiréevanWelsumSeptember2003BirkbeckCollegeLondonAbstract:Thispaperanalyseshowtradableserviceshavebeentreated,bothinstatisticalworkandintheacademiceconomicliterature.Itisobviousthatimprovementsstillneedtobemadet
2、otheharmonisationofstatisticaldefinitions,aswellonthedatacollectionitself.However,theliteraturehasnotestablishedanyobjections,eitherformalorempirical,totakinglong-standingtheoriesoftradeingoodsandapplyingthemtotradeinservices,providedtheparticularitiesofserv
3、ices,aswellastheshortcomingsofthedata,aretakenintoaccount.IwouldliketothankNigelPain,RonSmith,andMartinWealeforhelpfulcommentsandsuggestions.Email:dvanwelsum@hotmail.com1I.IntroductionInthispaperwesetouttodiscusstheissuesinvolvedinunderstandingserviceswithap
4、articularfocusoninternationaltradeinservices.Inthepast,mosteconomicmodelsofmarket-basedtransactionshavebeenbasedongoodswhiletheservicessectorhaslargelybeenignored,forvariousreasons.First,manyserviceshavetraditionallybeenconsideredasnon-tradable.Moreover,thed
5、ataforservicesmaybesubjecttoconsiderablemeasurementerror,notleastbecauseuntilrecentlytherewasnoconsensusonwhataservicewas,andhowtomeasureit.Infact,thestandardterminologyisveryunclear.Forexample,defence,whichisclassifiedasapublicgood,isclearlyaservice.Todayth
6、edebateisongoing,withorganisationsliketheWTO,forexample,workingtowardsabetterunderstandingofservicesclassificationsanddatarequirements.Finally,manyservicesindustrieswereheavilyregulated,sotradeinserviceswasnotanobviousissue.Detailedservicesdatahavenotbeencol
7、lecteduntilrecently,andarenotnecessarilyreliableforanalysisasrulesandregulationshavenotyetcompletelybeenharmonised.Nevertheless,asservicesmakeupover60percentofGDPinmostdevelopedcountries,itisimportantthatweunderstandthemechanismsandfunctioningofservicessecto
8、rs.DespitetheirdominantshareinGDP,servicesaccountforlessthanaquarterofworldtrade.Buttherearereasonstoexpecttheimportanceofservicesininternationaltradetoincreaseovertime.Developmentsintechnology,
