Abstract

Service trade has a key role in structure variation of world economy in recent years, and it has an increasing share in the total world trade. In recent decades, most of both developed and developing countries paid attention to services trade liberalization  due to the effects that it has on productivity and job creation. In this study we employ panel data by using data from 1995 to 2009 for a set of 21 developing countries in an attempt to investigate the impact of services trade liberalization on total factor productivity. The obtained result from estimate of model show a significant and positive relationship between services trade liberalization and total factor productivity.                                                                                       ​