The increasing importance of services expenditures and the dampening effect on global trade

Abstract: Globalization, particularly through international trade in goods, has helped to foster the creation of tremendous amounts of wealth and prosperity across much of the globe while lifting sizable portions of the world’s population out of poverty. In particular, the latter half of the twentieth century delivered unprecedented rates of increased economic integration among many countries. Access to global markets supported the industrialization of emerging economies and opened up new markets for firms in wealthier countries. As a result of the expansion of international trade and competition, consumers in rich and poor countries alike gained in terms of greater purchasing power, better-quality products, and more product varieties.

JEL Classification: F41; L16; O41;

Access Documents

File(s): File format is application/pdf
Description: full text


Bibliographic Information

Provider: Federal Reserve Bank of Chicago

Part of Series: Chicago Fed Letter

Publication Date: 2021-04-27

Issue: 456

Pages: 6