Higher expenditure in services limits trade growth – Fed paper
Growth of trade in 1990s and 2000s may be anomalous, researchers say
The growing share of spending in services relative to more tradeable goods is hampering the expansion of world trade, says a discussion paper published by the US Federal Reserve.
This trend implies a declining share of world trade relative to global GDP, even without protectionist policies, according to arguments made in Structural Change and Global Trade by Logan Lewis et al.
World trade expanded from 19% to 48% of global GDP between 1970 and 2015. However, this expansion could have been
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