Trade agreements and survival of service exports from Kenya

This study investigates the effect of GATS, a service-specific trade agreement, on the survival of service exports from Kenya to 176 countries between 1995 and 2019. Services are classified at a 1-digit level: travel, transport, computer and information, construction, financial, insurance, governmen...

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Main Authors: SocratesKraido Majune, Kamau John Gathiaka, Michael Ndwiga
Format: Article
Language:English
Published: Taylor & Francis Group 2022-12-01
Series:Cogent Economics & Finance
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/23322039.2022.2107768
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author SocratesKraido Majune
Kamau John Gathiaka
Michael Ndwiga
author_facet SocratesKraido Majune
Kamau John Gathiaka
Michael Ndwiga
author_sort SocratesKraido Majune
collection DOAJ
description This study investigates the effect of GATS, a service-specific trade agreement, on the survival of service exports from Kenya to 176 countries between 1995 and 2019. Services are classified at a 1-digit level: travel, transport, computer and information, construction, financial, insurance, government, other business, and personal, cultural, and recreational services. The discrete-time probit model with random effects reveals that GATS reduces the survival of service exports by 0.78%. At the category level, GATS only increases the survival of construction and government services. GATS also reduces the survival of Kenya’s exports to Africa when geographical regions are considered. However, GATS boosts the survival of services when it is interacted with the quality of institutions and the Services Trade Restrictiveness Index (STRI). Accordingly, reducing regulations and general improvement of the quality of institutions can help countries reap the benefits of a service-specific trade agreement fully.
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spelling doaj-art-0feaf4f829d64aef8bfcbb5e5a68d0ad2025-08-20T03:22:21ZengTaylor & Francis GroupCogent Economics & Finance2332-20392022-12-0110110.1080/23322039.2022.2107768Trade agreements and survival of service exports from KenyaSocratesKraido Majune0Kamau John Gathiaka1Michael Ndwiga2Department of Economics and Development Studies, University of Nairobi, Nairobi, KenyaDepartment of Economics and Development Studies, University of Nairobi, Nairobi, KenyaDepartment of Economics and Development Studies, University of Nairobi, Nairobi, KenyaThis study investigates the effect of GATS, a service-specific trade agreement, on the survival of service exports from Kenya to 176 countries between 1995 and 2019. Services are classified at a 1-digit level: travel, transport, computer and information, construction, financial, insurance, government, other business, and personal, cultural, and recreational services. The discrete-time probit model with random effects reveals that GATS reduces the survival of service exports by 0.78%. At the category level, GATS only increases the survival of construction and government services. GATS also reduces the survival of Kenya’s exports to Africa when geographical regions are considered. However, GATS boosts the survival of services when it is interacted with the quality of institutions and the Services Trade Restrictiveness Index (STRI). Accordingly, reducing regulations and general improvement of the quality of institutions can help countries reap the benefits of a service-specific trade agreement fully.https://www.tandfonline.com/doi/10.1080/23322039.2022.2107768trade agreementsGATSexport survivalservice exportsKenya
spellingShingle SocratesKraido Majune
Kamau John Gathiaka
Michael Ndwiga
Trade agreements and survival of service exports from Kenya
Cogent Economics & Finance
trade agreements
GATS
export survival
service exports
Kenya
title Trade agreements and survival of service exports from Kenya
title_full Trade agreements and survival of service exports from Kenya
title_fullStr Trade agreements and survival of service exports from Kenya
title_full_unstemmed Trade agreements and survival of service exports from Kenya
title_short Trade agreements and survival of service exports from Kenya
title_sort trade agreements and survival of service exports from kenya
topic trade agreements
GATS
export survival
service exports
Kenya
url https://www.tandfonline.com/doi/10.1080/23322039.2022.2107768
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AT kamaujohngathiaka tradeagreementsandsurvivalofserviceexportsfromkenya
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