This paper analyses the role of services in international trade through the lens of global value chains (GVCs …). Services account for more than 70% of world GDP but only for around 20% of world trade in balance of payments terms. In value … added terms, accounting for services embodied in exported goods, services account for 40% of world trade. However, the …

arm’s length. The model further implies that firms are more likely to offshore when frictions in the provision of services …

offshoring service tasks. As a result, services with stronger tradability characteristics are at a higher risk of being offshored …

Services offshoring is on the rise. Due to recent innovations in communication technologies, many services that used to … be non-tradable can be delivered from distance today. Still, German services imports have grown much slower than exports … over the past decades, indicating under-exploitation of the potential for services offshoring. To understand this …

unskilled than skilled intensive tasks (services), even though no assumption on the correlation between the degree of …