The determinants of export market performance in Organisation for Economic Co-operation and Development service industries

Abstract

This study aims to investigate the determinants of service export market performance, using OECD data. Real exchange rate, technology variables and institutional environment are introduced as explanatory variables in regressions for 17 OECD countries over 2001-2007. Some of the major findings from the study can be summarized as follows. There was no robust evidence that cost-related factors have an impact on service export performances. Controlling for cost changes, it was found that technology factors (R&D intensity, fixed capital formation and IT investment) have a positive effect on export market share dynamics. It is also clear that the institutional factors (human capital, free trade environment and English as an official language) have a positive impact on service export performances.