March 2016 — Page 3 of 3 — LIRNEasia


Everyone who stops to think knows that trade in services is under-counted. Services do not go through customs points in ports and airports and do not have measurement systems honed over centuries. But like the drunk who was looking for his keys not where he dropped them, but where there was light, we all have a tendency to talk about trade using only data on goods trade, because that is what is available. I’ve done it myself, despite having worked on services trade since the 1980s. That is what caught my eye in this little piece on how to explain why international trade (in goods) appears to have flattened out.