Have the Emerging Developing Economies been Enjoying the Inclusive Global Growth in the Export of Modern Services?

Drawing on the definition of ‘inclusive growth’ of providing equitable opportunities for economic participants during economic growth, an important question that is investigated in this study is how inclusive is the export of modern services of computer and information services, and miscellaneous professional services in the international trade arena. Applying the yardstick of gauging the gap between potential and actual performances, the strength of ‘inclusive growth’ is measured. Using a meta-frontier framework, this paper compares the modern services export potential and meta-technology ratios for the selected high performing emerging economies of South and East Asia with the developed world. The results show that there are significant differences in the meta-technology ratios of the emerging countries in modern services compared to developed countries. Alarmingly, there is substantial unrealized export potential for high performing developing countries with respect to the benchmark frontier available to all countries implying lack of ‘inclusive growth’ in the international trade arena.