Regional integration and services exports: A comparative analysis of growth, performance, and competitive advantage for ECO region

Abstract

This study intends to perform the comparative analysis of
growth, performance, and competitive advantage of services
exports of Pakistan regarding ECO (Economic Cooperation
Organization) countries. There hardly exists any such study. To
examine the growth and performance of services exports in ECO
countries this study relies on descriptive statistics while the
competitive advantage of Pakistan regarding other ECO
countries is analyzed using well recognized Balassa index.
Results of the study show that although the share of ECO in
world services exports is comparatively small than other regional
trading blocs however, it is consistently on the rise. And
Balassa’s index shows that Pakistan has managed to maintain
and develop exports of royalties and license fees services and
computer and information services over the years. To exploit its
RCA (Revealed Comparative Advantage) in computer and
information services, this study suggests Pakistan should spend
on the education and training of its youth to enhance its human
capital.