Trade liberalization in services boosts global trade and economic growth exponentially.
Trade liberalization in service industries can boost international trade in both goods and services. By allowing national service providers to offer services across borders, trade barriers are reduced, leading to increased trade efficiency. This can result in greater benefits than just focusing on services trade alone. The study shows that when services trade is liberalized, it can also encourage the fragmentation of production processes across countries, further enhancing international trade and the overall gains from trade.