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Modes of Supply for US Exports of Services
Author(s) -
Christen Elisabeth,
Francois Joseph
Publication year - 2017
Publication title -
the world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/twec.12330
Subject(s) - market size , economics , mode (computer interface) , focus (optics) , business , geographical distance , industrial organization , international economics , international trade , population , physics , demography , optics , operating system , sociology , computer science
We examine the choice of modes of delivery in services based on US data, including both cross‐border exports and sales through foreign affiliates. We focus on characteristics of destination markets and how this impacts on mode choice. We find that market size, distance and policy all play a role in where firms establish, and in how many markets firms enter. The importance of sales through affiliates relative to total foreign sales also depends on factors like market size, geographic and economic distance and the policy regime in place. Precisely, how important these factors are depends on the sector in question.