Multilateral trade boosts services export diversification, reviving global economic growth.
Multilateral trade liberalization helps countries diversify their services exports, benefiting both developed and developing nations. This was found by analyzing data from 133 countries between 1995 and 2014. The study shows that countries with high reliance on manufactured goods exports or diverse export products benefit the most. Interestingly, countries with more foreign direct investment also see increased services export diversification. This research suggests that cooperation among World Trade Organization members on trade issues could boost economic growth, especially during the COVID-19 pandemic.