International trade in services facing the current global challenges

Abstract

This paper examines the current global trends in trade in services, considering the increasing international challenges during the post-pandemic recovery process and the progress in the implementation of new technologies in service business industries. In the first part of our research, the major role of services in the global economy is highlighted, through the main indicators (value added of GDP, trade in services of GDP and employment), under the impact of the last three decades influencing factors. The results of our research show that the outlook for global services trade will be influenced, on the one hand, by the persistence of general uncertainty and the increasing fragmentation of the world economy, given the current global geopolitical tensions, and on the other hand, by continuously developing of new business models based on digitally traded services and increasing the use of smart technologies. The last part of our analysis is dedicated to a case study with particular evidence related to recent developments in trade in services in Romania, revealed by the specific services development indicators. Aspects related to Romania's progress in aligning with the current trends of intensive implementation of new technologies in service industries are also included. The future trends in services trade in Romania tend to be strongly linked to international trends, but also to its national policies, focused on the competitiveness of service exports intensive in new technologies and high-skilled human capital.