How have the comparative advantages of EAEU member states changed in the service sector?

Abstract

The more developed the country's economy, the larger the share of services in the structure of GDP, which speaks of the importance of this sector from the point of view of economic development. To foster the development of the service sector, it is important to understand the directions in which the country has potential. The paper explores the competitiveness of services exports among EAEU member states, based on the evaluation of comparative advantages. The dynamics of comparative advantages before and after the formation of EAEU were observed. The analysis revealed that EAEU member states possess comparative advantages in traditional services, such as transport services, construction, and travel. The comparative advantages changed slightly during the five years of the Union's existence, but underwent more significant changes against the backdrop of the 2022 RussianUkrainian war. In particular, Russia's comparative advantages have decreased in transport services. At the same time, Russia's comparative disadvantages in contemporary services decreased. Belarus and Armenia have gained significant comparative advantages in the field of telecommunications, computer and information services, with the latter also excelling in travel services.