Exports from LMICs

FIGURE 4.6 A Few Large Emerging Markets Account for Most of the Services Exports from LMICs

Share of the top 10 exporting LMICs in selected services subsectors, 2017

Share of LMIC services exports (%) 100 90 80 70 60 50 40 30 20 10 0

Professional, scientific, and technical Finance and insurance

Global innovators ICT Transportation and storage Accommodation and food

Low-skill tradables

Other LMICs Top 10 exporters

Source: Calculations using the Trade in Services data by Mode of Supply (TiSMoS) database, World Trade Organization. Note: The top 10 exporting low- and middle-income countries (LMICs) in each services subsector are measured by the value of exports in US dollars. LMICs, by World Bank income group classifications, had 1994 gross national income of less than US$8,955. ICT = information and communications technology.

LMICs among the top 10 global exporters. A few LMICs were among the top 10 global exporters of services between 2005 and 2017. The rise of China as a manufacturing powerhouse often obfuscates its rising importance as an exporter of global innovator services. China in 2005 was already the 5th-largest exporter of professional, scientific, and technical services.4 And although China was outside the top 10 exporting countries for financial services until 2010, it was the 10th-largest exporter in 2017. Furthermore, China was the 7th-largest exporter of wholesale and retail services in 2010 and 2017, and it went from being the 10th-largest exporter of transportation services in 2010 to the 7th-largest in 2017. China’s success in exporting these low-skill tradable services is perhaps less surprising, given that its exports are closely linked to the export of goods.

Among the other most successful LMICs, India—much cited for its success in exporting software services—was the 8th-largest exporter of ICT services in 2017, having been outside the top 10 until 2010.5 Korea, reinforcing its position as a global manufacturing hub, has become a leading global exporter of low-skill tradable services. Outside of the top 10 till 2010, Korea was the 8th-largest exporter of wholesale (and retail) services in 2017. Similarly, Korea was the 8th-largest exporter of transportation services in 2010, although it exited the top 10 in 2017. In accommodation and food services, Turkey was the 8th-largest exporter in 2010, and Thailand was the 4th-largest