Internationalisation of Services, Productivity and Economic Growth: Literature Review

Over the past decade there has been an increased internationalisation of services via trade and investment as well as an increased international outsourcing of services. However, to date there is a lack of solid empirical evidence on the extent and determinants of the internationalisation of services in the European Union and its effects on productivity, employment growth and competitiveness. This study discusses recent theory and empirical evidence on the internationalisation of services and its effects on firm performance. In addition, it outlines existing knowledge gaps and proposes a research agenda and methodology to address them.