DETERMINANTS OF SERVICE EXPORT IN SELECTED DEVELOPING ASIAN COUNTRIES

Siti Aisah Ahmad · Shivee Ranjanee Kaliappan · Normaz Wana Ismail

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Global trade and economics International Business and FDI Economic and Technological Innovation

Abstract

This paper attempts to empirically examine the determinants of service export in selected developing Asian countries (China, Hong Kong, South Korea, India, Iran, Indonesia, Malaysia, Philippines, Singapore, Thailand, Kuwait, Saudi Arabia and Turkey). The study conducted a static linear panel data analysis on annual data covering the period of 1985-2012. The main finding indicates that exchange rate, foreign income, foreign direct investment (FDI), the value added by services and communication facilities are likely to influence services exports in the selected developing Asian countries. This suggests that these countries have the opportunity to compete globally by exporting services, provided that they are able to exploit and enhance their potential by focusing on the significant and relevant indicators. Keywords: Services Exports; Asian Developing Countries; Panel Data.

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