In spite of its growing importance, the international trade literature has neglected the study of the service sector. This paper seeks to start to bridge that gap by studying the structure of services trade. Specifically, this paper looks into the prevalence of intra-industry trade in this sector. The results show that intra-industry trade is an important characteristic of this sector and it is probably of a similar magnitude as the level of intra-industry trade in goods. The analysis presented here indicates that GDP per capita and the relative size of the domestic service sector are significant determinants of the level of intra-industry trade across countries. Presented 11th International Conference, Washington, D.C., May 2001.
