INTERNATIONAL-TRADE IN PRODUCER SERVICES - ALTERNATIVE EXPLANATIONS

This article discusses tendencies of trade in producer services amongst advanced economies. A number of theoretical approaches are assessed in their ability to approach the problem of trade specialisation in this fast growing area of international trade. The article advocates an approach which makes use of current concepts of industrial organisation theory, such as economies of scope, organisational economies etc., to explain the complex pattern of trade specialisation in producer services. The link of trade in producer services with internationalisation of goods production and thus with international direct investment and trade in goods is emphasised.