Editors Arti Grover Goswami• Aaditya Mattoo• Sebastián Sáez ADeveloping COUNTRY ...

406 Pages·2011·6.77 MB·English

by  World Bank Group

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EXPORTING
SERVICES

EXPORTING
SERVICES
A DEVELOPING
COUNTRY
PERSPECTIVE
Arti Grover Goswami, Aaditya Mattoo,
and Sebastián Sáez,
Editors
© 2012 International Bank for Reconstruction and Development /
International Development Association or The World Bank
1818 H Street NW
Washington DC 20433
Telephone: [phone]
Internet: www.worldbank.org
1 2 3 4 15 14 13 12
This volume is a product of the staff of The World Bank with external contributions. The
findings, interpretations, and conclusions expressed in this volume do not necessarily
reflect the views of The World Bank, its Board of Executive Directors, or the governments
they represent.
The World Bank does not guarantee the accuracy of the data included in this work. The
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do not imply any judgment on the part of The World Bank concerning the legal status of
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All other queries on rights and licenses, including subsidiary rights, should be addressed
to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433,
USA; fax: [phone]; e-mail: [email protected].
ISBN (paper): 978-0-8213-8816-7
ISBN (electronic): 978-0-8213-8823-5
DOI: 10.1596/978-0-8213-8816-7
Library of Congress Cataloging-in-Publication Data
Exporting services : a developing country perspective / Arti Grover Goswami, Aaditya
Mattoo, Sebastián Sáez, editors.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-8213-8816-7 — ISBN 978-0-8213-8823-5 (electronic)
1. Service industries—Developing countries. 2. Foreign trade regulation. 3. Developing
countries—Commerce. 4. Free trade. I. Goswami, Arti Grover, 1978– II. Mattoo,
Aaditya. III. Sáez, Sebastián.
HD9989.D44E97 2011
382'.4500091724—dc23
2011039571
Cover image by Max Lyonga, Tiko, Cameroon, courtesy of the World Bank Art Program.
Cover design by Tomoko Hirata/World Bank.
CONTENTS
About the Editors and Contributors xiii
Foreword xv
Acknowledgments xvii
Abbreviations xix
1 Exporting Services: A Developing-Country Perspective 1
Arti Grover Goswami, Aaditya Mattoo, and Sebastián Sáez
2 Service Exports: Are the Drivers Different for
Developing Countries? 25
Arti Grover Goswami, Poonam Gupta, Aaditya Mattoo,
and Sebastián Sáez
3 A Cross-Country Analysis of Service Exports:
Lessons from India 81
Arti Grover Goswami, Poonam Gupta, and Aaditya Mattoo
4 Reaching the World through Private Sector Initiative:
Service Exports from the Philippines 121
Soonhwa Yi
5 Exploring Niches for Exporting: The Case of Malaysia 161
Mahani Zainal Abidin, Tham Siew Yean,
and Loke Wai Heng
6 Unexploited Potential: The Case of Egypt 193
Ahmed Farouk Ghoneim
7 Becoming a Global Exporter of Business Services?
The Case of Kenya 237
Nora Dihel, Ana Margarida Fernandes, Richard Gicho,
John Kashangaki, and Nicholas Strychacz
v
vi Contents
8 Underlying Lessons: Service Exports from Brazil 269
Mário Marconini
9 The Elusive Road to Service Export Diversification:
The Case of Chile 309
Francisco J. Prieto, Sebastián Sáez, and Arti Grover Goswami
Index 361
Contents vii
Boxes
1.1 Defining Commercial Services 9
4.1 Exporting Services through the Movement of Labor:
The Pattern 127
6.1 Case Studies of Successful Outsourcing Firms 220
6.2 ITIDA Programs 223
7.1 Description of Export Transactions 255
7.2 Kenyan Services Exporters’ and Innovators’ Success
Stories: KenCall, Txteagle, Ushahidi, and Safaricom 257
7.3 The Experience of South Africa in ITeS Exports 262
9.1 Assessing the Performance of Chile’s Service Exports:
An Econometric Illustration 320
9.2 Hidden Service Exports 327
9.3 The Importance of Developing Credible Services
and Service Providers 339
Figures
1.1 Partial Correlation between Service Exports and Human
Capital and Electronic Infrastructure, 2007 6
2.1 Service Exports: A Comparison across Income Groups, 2000–08 26
2.2 Human Capital and Service Exports, 2007 30
3.1 Agriculture, Industry, and Services as a Share of
India’s GDP, 1950–2010 85
3.2 Average Annual Growth Rates in India, by Sector, 1951–2009 86
3.3 Service Sector’s Share of India’s GDP and Log Per Capita
Income, by Sector, 1950–2006 87
3.4 Manufacturing Sector’s Share of GDP and Per Capita
Income, 1950–2006 88
3.5 Service Activities in Groups 1, 2, and 3 as a Share of
GDP, 1950–2008 90
3.6 Per Capita Service Output and Tertiary Education
across Indian States, 1980–2000 Averages 94
3.7 Importance of Service Exports in Aggregate
Exports, 1970–2009 95
3.8 RCA in Disaggregate Services, 1980–2010 96
3.9 Composition of India’s Software Service Exports,
2002/03 and 2007/08 97
3.10 India’s Outward FDI, by Sector, 1970–2007 102
3.11 Ownership Structure of India’s Outward FDI, 1970–2007 104
3.12 India’s OCS Exports, Actual versus Predicted, 1990–2010 106
3.13 Export Growth from STP Units, 2000–09 111
4.1 Growth in Exports of Goods and Services, 1999–2009 124
4.2 Information and Business Services as a Proxy for BPO, 1999–2009 124
viii Contents
4.1.A Remittances in the Philippines Compared with
Neighboring Countries, 1980–2010 127
4.1.B New Deployment by Occupation and Gender, 2007 128
4.1.C New Deployment by Skill Category, 1995–2007 129
4.3 Comparative Financial Attractiveness Scores, 2011 139
4.4 Correlation between International Visitor Arrivals
and Tourism Export Receipts, 1990–2009 145
4.5 Comparative Analyses of TTCI Rankings, 2009 147
4.6 Marketing Effectiveness, 2008 151
5.1 Value of Manufactured Exports and Transport
Service Exports, 1995–2008 166
6.1 Structure of Egypt’s Exports of Commercial Services and
Other Commercial Services, 2000 and 2008 197
6.2 Unemployment Rate of Educated Persons, 1994–2007 216
6.3 Sources of Tourists in Egypt, 2007 227
7.1 Services’ Share of GDP in Kenya, 2000–08 239
7.2 Kenya’s Service Exports and Imports as a Share of
Total Exports and Imports, 2000–08 239
7.3 Kenya’s Export Performance: Service Trade, 2004–08 241
7.4 IT, BPO, and KPO Services 243
7.5 Types of Activities That Can Be Outsourced across an
Organization’s Value Chain 244
7.6 Evolution of Business Service Sectors 245
7.7 Export Turnover of Service Sectors, 2007 247
7.8 Service Exporters’ Target Markets 249
8.1 Service Exports by Category, 1970–2009 272
8.2 Composition of Service Exports, 2009 275
8.3 Brazilian Service Export Markets, 2008 276
8.4 Growth in Service Exports, 1989–2009 276
8.5 Dynamism and Brazilian International Participation, 2003–07 278
8.6 Doing BusinessRankings, Brazil versus India, 2010 280
8.7 Doing BusinessRankings, Brazil versus China, 2010 280
8.8 Importance of Each Fundamental Aspect, BRASSCOM 281
8.9 Importance of Each Fundamental Aspect, ABES 284
8.10 Distribution of Brazilian Direct Investment Abroad, 2009 287
8.11 FDI in the Service Sector, 2004–09 288
8.12 FDI in Brazil, 2005–09 289
8.13 FDI Inflows as a Share of Total FDI, by Sector, 2009 290
8.14 BNDES’s Expenditures in Credit Lines to the Service
Sector, 1998–2009 292
8.15 BPT Service Exports, 1999–2009 294
8.16 Cost of Dealing with Construction Permits, 2006–10 297
8.17 Importance of Each Fundamental Aspect, Construction 298