The paper
This paper compares internationally engaged services firms with domestic firms using enterprise surveys from developing countries. It asks whether the export and foreign-ownership premia familiar from manufacturing also appear in services.
Research findings
- Services exporters and foreign-owned services firms tend to be larger, more productive, faster growing, and higher paying than domestic firms.
- Export premia are generally smaller in services than in manufacturing, while foreign-ownership premia are often larger.
Policy takeaways
- Include services firms in trade and investment strategies and in firm-level competitiveness diagnostics.
- Assess exporting and foreign ownership separately when examining how international engagement relates to productivity, investment, and jobs.