The Impact of Innovation on Financial and Insurance Services Exports

Research output: Contribution to journalArticle

Abstract

Striving for growth in service exports is an important way many service-oriented countries offset trade deficits commonly generated by a disproportional dependence on manufactured imports. Exports of business services are a significant subset of overall services trade. This paper examines whether innovation enhances exports of financial and insurance services by firms operating in these service industries. Results indicate that innovation has a sizable, positive impact on financial and insurance services exports. This holds true when examining a country's aggregate level of insurance and financial services exports, as well as bilateral exports to a specific trade partner. However, robustness tests suggest that the positive effect of innovation on bilateral financial and insurance services exports holds true only at the extensive margin of trade (i. e. The decision to export), but not at the intensive margin (i. e. how much to export).

Original languageEnglish (US)
Article number20160310
JournalB.E. Journal of Economic Analysis and Policy
Volume17
Issue number4
DOIs
StatePublished - Jan 1 2017

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Innovation
Insurance
Bilateral
Intensive margin
Import
Extensive margin
Robustness test
Business services
Service industries
Trade deficit
Service-oriented
Services trade
Financial services

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics
  • Economics, Econometrics and Finance (miscellaneous)

Cite this

The Impact of Innovation on Financial and Insurance Services Exports. / Briggs, Kristie.

In: B.E. Journal of Economic Analysis and Policy, Vol. 17, No. 4, 20160310, 01.01.2017.

Research output: Contribution to journalArticle

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