The network of international trade in services

Abstract

AbstractWhile the share of services in international trade has been increasing very slowly over the years, oscillating around 20 per cent since the 1990s, their role has constantly gained importance. Trade in services certainly faces many more obstacles than trade in goods, but its impact on globalization and countries’ competitiveness is crucial, and it is therefore worth investigating its characteristics. The present work aims to analyse the networks of international trade in services and to unveil specific properties by exploiting a number of existing methodologies and algorithms. After describing the global properties of the networks of the various service classes, we investigate differences and similarities among them, and we highlight the most influential countries in the trade of specific services. We find that traded services display sharply different characteristics and they can be grouped in two different sets according to their network structures. Countries’ positions in these networks are diversified, with connections unevenly distributed, especially for some service categories. We discover that the structure of links, i.e. the topology of the networks, identifies the role of countries much more clearly than the sole amount of services traded. Overall, the results highlight important features, as well as changes over time, in the landscape of the international services.