The Importance of Modern Services Exports for the Developing Countries: The Case of the BRICS Economies

Abstract

This article underscores the pivotal role of high-quality services trade in global economic performance, specifically focusing on BRIC countries and Türkiye. The services trade is itself becoming an increasingly important research topic from theoretical, empirical and practical (policy) perspectives. It is suggested that ‘during the 20th century, the industrial sector was reducing its relevance and the third sector; the services becoming more and more relevant’.‘The services are playing an ongoing critical role in transforming international trade and investment patterns, both through enabling the development of value chains and through creating value chains in their own right. The paper highlights the positive impact of sophisticated services exports on economic growth in developing nations. The study assesses the evolution of BRICS' and Türkiye's services exports over the past two decades, using the PRODY and EXPY indices to measure sectoral productivity and export sophistication. The findings have significant implications for researchers and policymakers in developing countries, including Türkiye, as they navigate the changing global services economy. The keywords "services exports sophistication," "high-value-added services," "BRIC," and "Türkiye & Emerging Economies" capture the core themes of the research