Conceptual Issues Relating to Services in the International Economy

Abstract

Largely as a result of U.S. initiative, issues relating to trade and international factor movements involving services have been given a prominent place on the international policy agenda. This was reenforced by the resolution of the GATT member countries in Punta del Este in September 1986 to include services issues in the new round of multilateral trade negotiations. While a considerable amount of data and descriptions of individual service sectors and their problems have become available, economists have begun only recently to address the important conceptual issues relating to services. The purpose of our paper is to review some of these conceptual issues and, in the process, our hope is to stimulate discussion and further analysis of services in the international economy.