GLOBAL INDICATORS Indicators Group Research Note GROUP World Bank Research and Development Center in Chile No. 1/September 2019 Exporting financial services in Latin America and the Caribbean Adrián F. González, Silvia Carolina López-Rocha, Tiffany (Rongpeng) Yang, Marilyne Youbi and Inés Zabalbeitia-Múgica. According to the World Trade Organization (WTO), trade in services has 1. Cross border delivery: financial services are delivered from the territory become the most dynamic segment of world trade, growing more quickly of one economy into the territory of another economy. than trade in goods.1 While travel remains the most exported service both 2. Onshore sales to non-residents: financial services are delivered from worldwide and in Latin America and the Caribbean (LAC), other services the territory of one economy to an international visitor. 3. Commercial presence offshore: a financial service provider sets up are becoming relevant for both developed and developing economies. operations in a foreign country. Among them, financial services is one of the most important categories in 4. Fly-out to service customers offshore: an individual offers financial terms of value. Worldwide, the value of financial services exports rose by services while in the destination economy. 15.2% in real terms between 2008 and 2017. Nevertheless, this global trend of rising exports of financial services was not reflected in LAC, where With $106 billion in receipts in 2017, the United States is the world's they contracted by 24.4% between 2008 and 2016.2 In 2016 financial largest exporter of financial services. In the LAC region, Panama is the services accounted for just 2.2% of total services exports from the region, main exporter of financial services. Mexico leads trade in financial services 91% of which was contributed by 10 countries.3 Exporting more financial within the Pacific Alliance, followed by Chile (table 1). services could benefit LAC economies by improving the allocation of Table 1. Top 10 exporters of financial services and selected capital through enhancing competition between banks4 and boosting LAC economies economic growth.5 The Inter-American Development Bank has highlighted exports of financial services as a major opportunity to add value and Economy Value in 2017 (US$ million) % of GDP in 2017 diversify the region's exports.6 However, for economies to reap these United States 106,423 0.55 benefits, adequate regulation needs to be put in place.7 United Kingdom 83,208 3.17 Luxembourg 60,593 97.10 What are exports of financial services and what are the general Germany 23,484 0.64 Singapore 22,783 7.03 trends? Switzerland 20,294 2.99 The WTO’s General Agreement on Trade in Services (GATS) defines trade Hong Kong SAR, China 19,846 5.81 Ireland 16,563 4.96 in services as the production, distribution, marketing, sale, and delivery of France 11,562 0.45 any service in any sector except services supplied in the exercise of Japan 10,356 0.21 governmental authority. In 2017, both globally and in LAC, the three most Panama 1,222 1.96 exported service categories8 by value were travel, other business Brazil 679 0.03 services,9 and transport (figure 1). Worldwide, financial services rank fifth, Mexico 262 0.02 Chile 136 0.05 representing 8.6% of all services exported. Overall, the value of exports for Uruguay 130 0.23 all sectors increased significantly over time, and the financial services Colombia 81 0.03 segment is one of the most dynamic. Peru 1/ 56 0.03 Source: World Trade Organization statistics database (https://data.wto.org); World The GATS classifies financial services in 16 categories including banking, Development Indicators database (http://data.worldbank.org/data-catalog/world- securities, asset or funds management, leasing, provision of financial development-indicators), World Bank. 1/ Data are for 2016. information and consumer credit, and outlines four modes of exporting them: Figure 1. Worldwide exports of services, by category Travel Other business services Transport Telecommunications, computer, and information services Financial services Charges for the use of intellectual property Insurance and pension services Construction Manufacturing services on physical inputs owned by others Maintenance and repair services 2005 2017 Government goods and services Personal, cultural, and recreational services 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 Total services exports (US$ million) Source: World Trade Organization statistics database (https://data.wto.org). Affiliation: Doing Business, World Bank Group. Acknowledgement: We received useful comments from Roberto Echandi and Martín Molinuevo, and helpful edits from Bronwen Brown. The Research and Development Center in Chile provided financial support for this note. Objective and disclaimer: Indicators Group Research Notes present short analytical studies from the different teams of the Indicators Group including Doing Business; Women, Business and the Law; and Doing Business in Agriculture. The notes carry the name of the author and should be cited accordingly. The findings, interpretations and conclusions are entirely those of the authors. They do not necessarily represent the views of the World Bank Group, its Executive Directors or the governments they represent. Research and Development Center in Chile Exporting financial services in Latin America and the Caribbean BOX 1. Exporting financial services in Ireland 12.5% in 2018).e Ireland has a vast double taxation treaty network, with 73 signed treaties and several more under negotiation. Also, where a treaty Exports of services have become more prevalent in Ireland since the does not cover a specific tax, Ireland provides unilateral tax relief. There 2000s, increasing their value by 129% in real terms between 2007 and are no financial transaction taxes and most financial instruments are not 2017. Financial services, together with computer and information services subject to stamp duty. The Irish tax regime also encourages the and insurance services, contributed significantly to this increase. management and creation of intellectual property with an effective tax Accounting for 5% of GDP in 2017, Ireland was ranked 8 worldwide in saving of 37.5% for expenditures on research and development.f value terms for financial services exports.a Ireland mainly exports financial services to the European Union—the United Kingdom and Luxembourg Several reforms were implemented in recent years to streamline the were the main destinations in 2017.b To become a top exporter Ireland process of starting a business in Ireland. For example, the Companies Act implemented a series of regulatory changes that promoted financial of 2014—which applies to Irish registered companies and Irish branches of services exports. foreign companies—consolidated laws from 1963 and repealed more than two dozen statutes.g Ireland also implemented online business registration In recent decades, Ireland developed a policy framework that promoted a and, in 2016, the country removed the requirement that founders swear competitive and open business environment as well as corporate tax rate before a commissioner of oaths.h certainty to support business confidence. Ireland ranked 23 of 190 economies on the ease of doing business and 4 on the ease of paying Global talent is also a key asset for Ireland, which has one of the youngest taxes in Doing Business 2019. Ireland also ranks 11 on the Forbes Best populations in the European Union and whose workforce is adaptable, Countries for Business 2019 index and is a top destination for foreign diverse, and well-educated. About 17% of the Irish population was born direct investment.c abroad, and the country ranks among the top 10 economies globally for education system quality and the transfer of knowledge between higher According to a 2018 report by PwC, Ireland has developed the expertise to education institutions and companies.i make the country a successful financial hub. The study ranked Ireland first for labor productivity, attracting and retaining workers, investment a. World Bank staff calculations using WTO data downloaded on February incentives, flexibility and adaptability, attitude toward globalization, 28th, 2019, and WDI GDP deflator. attracting high-value projects based on volume of job creation, and tax b. Ireland, Central Statistics Office 2017. attractiveness for digital business models. Furthermore, investment in the c. IBM Institute for Business Value 2018. economy is diversified. For example, Ireland hosts 20 of the top 25 d. Asia Matters 2018. financial services companies, 16 of the top 20 global software companies, e. The Tax Foundation 2018. and four of the top five IT services companies.d f. Asia Matters 2018. g. Mason Hayes & Curran 2015. Ireland's tax structure also contributes to its leading position. The h. Doing Business database. country's corporate income tax rate is among the lowest worldwide (at i. Asia Matters 2018. What are the drivers of financial services exports? complexities. Investors are more likely to import financial services from transparent, user-friendly, no-surprise jurisdictions.12 A non-resident Several factors have been associated with an economy's potential to entrepreneur would be reluctant to contract financial services in an export financial services. These factors include taxation, financial markets economy where those services are linked to heavy taxation or complicated sophistication, a competitive regulatory environment, transparency and absence of corruption, human talent, and ICT infrastructure (figure 3).10,11 tax regimes. By contrast, the tax regimes of some of the top financial services exporters—Ireland (box 1), Luxembourg, and Singapore—are An economy's taxation system is important for exporting financial examples of tax regime simplicity. Not surprisingly, there is a positive services. To boost exports of financial services, an economy's fiscal regime relationship between an economy's ease of paying taxes as measured by should be globally competitive and free of uncertainties and unnecessary Doing Business and its exports of financial services (figure 2). Figure 2. The biggest exporters of financial services are economies where regulation is business-friendly and paying taxes is relatively easy Export of financial services (log of US$ million) Export of financial services (log of US$ million) 12 12 10 10 8 8 6 6 4 4 2 2 0 20 40 60 80 100 0 20 40 60 80 100 Ease of doing business score (0-100) Score for paying taxes (0-100) Source: Doing Business 2019; World Trade Organization Statistics, 2017 (https://data.wto.org). Note: Both relationships are statistically significant at the 1% level after controlling for income. 2 Indicators Group Research Note No. 1 Figure 3. Selected economies’ performance on drivers for exporting financial services Paying taxes Financial access $ Financial system Doing Business, World Bank, 2017/18 $ International Monetary Fund, 2018 World Economic Forum, 2018 Score of paying taxes (0-100) Average # of branches per 100,000 people WEF score of access to finance (0-100) Ireland 94.5 United States 31.5 United States 92.1 United Kingdom 87.1 United Kingdom 25.1 United Kingdom 87.8 United States 84.1 Panama 22.3 Chile 80.3 Chile 75.3 Ireland 20.7 Ireland 68.5 Mexico 66.7 Colombia 15.3 Panama 66.9 Peru 65.4 Chile 15.2 Colombia 63.8 Colombia 57.9 Mexico 14.1 Mexico 60.8 Panama 46.7 Peru 7.6 Peru 60.5 0 20 40 60 80 100 0 10 20 30 40 0 20 40 60 80 100 *UK data dates to 2013 Ease of doing business Corruption People skills and availability Doing Business, World Bank, 2017/18 Transparency International, 2018 A.T. Kearney, 2018 Ease of doing business score (0-100) Corruption perceptions index (0-100) Average A.T. Kearney metric (0-3) United States 82.8 United Kingdom 80 United States 2.8 United Kingdom 82.7 Ireland 73 United Kingdom 2.3 Ireland 78.9 United States 71 Ireland 1.7 Mexico 72.1 Chile 67 Mexico 1.6 Chile 71.8 Panama 37 Colombia 1.5 Colombia 69.2 Colombia 36 Chile 1.3 Peru 68.8 Peru 35 Peru 1.2 Panama 66.1 Mexico 28 Panama 0.8 0 20 40 60 80 100 0 20 40 60 80 100 0 0.5 1 1.5 2 2.5 3 English Internet penetration Service location Education First, 2018 Internet Telecommunication Union, 2017 A.T. Kearney, 2018 Average of EF scores (0-100) Internet users as percentage of total pop. (0-100) Average A.T. Kearney metric (0-10) United Kingdom 94.8 Chile 5.8 Chile 52.0 Ireland 82.2 Colombia 5.7 Panama 49.9 United States 76.2 Mexico 5.7 Chile 66.0 United Kingdom 5.4 Mexico 49.8 Mexico 59.5 Peru 5.4 Peru 49.3 Colombia 58.1 United States 5.4 Panama 54.0 Panama 5.0 Colombia 48.9 Peru 45.5 Ireland 4.2 0 20 40 60 80 100 0 20 40 60 80 100 0 2 4 6 8 10 The local financial sector must also be developed enough to be chosen placed at a disadvantage by their home economy's business by non-residents. Economies with advanced financial systems are better environment when competing for work offshore. The biggest exporters integrated and can facilitate the delivery of services between one of financial services tend to be those economies whose regulatory another. They also expand rapidly and attract foreign capital that serves framework is more business friendly (figure 2). Indeed, four of the to strengthen their positions as financial hubs, as in the case of the world’s top 10 exporters of financial services (the United States; the United Kingdom or the United States.13 The size of an economy's United Kingdom; Singapore; and Hong Kong SAR, China) also rank in the financial institutions is increasingly important in attracting trade in top 10 economies worldwide on the ease of doing business in 2017/18. financial services. For example, in 2017, Peru’s largest bank was 2.4% the A competitive regulatory framework does not mean deregulation. size of the largest U.S. bank.14 Given the risks involved in financial Economies must ensure that the rules governing financial services are transactions, a large Peruvian company might be more likely to trust its up-to-date and consistent with global good practices16 (such as the business to a bank in the United States than to a Peruvian bank, despite Basel III principles) and that the regulation protects intellectual the Peruvian bank's local expertise. The sophistication of financial property.17 markets is also related to how investors are treated: most developed financial systems allow free movement of capital and foreign ownership Transparency is among the factors which exert the most influence on an of assets.15 economy's ability to successfully export financial services.18 Transparency is particularly important as financial services is an industry prone to corruption A regulatory framework that enhances competition and discourages and bribery when performing transactions offshore.19 Because of this, burdensome intervention from the government is also key when governments must implement the highest standards of integrity, exporting financial services. Financial institutions should not be openness and transparency—together with strong judicial systems—to 3 Exporting financial services in Latin America and the Caribbean avoid becoming misused offshore jurisdictions.20 One of the reasons Generally speaking, there is a positive relationship between services importers of financial services tend to choose the United Kingdom, for exports and economic growth.30 The UN Conference on Trade and example, is because it offers strong, clear and consistent regulations that Development (UNCTAD) points out that trade in services creates jobs, keep corruption levels low. The country also has an independent judiciary reduces unemployment and increases competitiveness.31 The OECD and effective mechanisms for international commercial dispute further states that an increase in exports of services can result in an resolution.21 increase in productivity since services exports expand local service providers access to foreign markets, add value to their service chain and Likewise, local expertise and talent contribute to an economy's take advantage of knowledge spillovers.32 Interestingly, those economies competitiveness when exporting financial services.22 There is a positive with the highest trade barriers—including developing economies— relationship between people skills and the availability of qualified benefit the most from liberalizing trade in financial services.33 Not professionals and the value of financial services exports.23 To boost surprisingly, a growing share of developing economies are exporting exports of financial services, an economy should provide specialized, financial services; today they account for more than half of the world’s skilled financial services workers that would be sought after from around total financial services exports.34 the globe. To do so, an economy should have top-level academic institutions training people to become experts, as well as incentives to Trade in financial services leads to both short- and long-term economic retain graduates in the country. Establishing a legal framework that retains growth. By developing exports of financial services, economies can university graduates of foreign origin and attracts skilled migration to fill deepen their foreign market base. Trade in services can boost competition and encourage innovation which, in turn, fuels economic growth.35 shortages of qualified workers would also be important.24 According to UNCTAD, financial services (including exports of financial A final critical element is ICT infrastructure, which must be sufficiently services) can be instrumental for economic development by securing and developed to sustain a vast flow of financial services information.25 distributing financial resources more efficiently.36 The liberalization of the Technology is the backbone of financial services exports since it enables financial sector enhances the distribution of capital by encouraging importers to access financial information at minimal cost in real time. competition among banks, cutting down transaction costs for Improvements in communications technologies enable importers to cross-border trade, and disseminating information and competencies.37 follow developments affecting foreign markets and companies more Exports of financial services represent a significant opportunity for efficiently.26 economies in Latin America and the Caribbean to diversify, sophisticate and add value to exports.38 Toward the end of 2017, the Inter-American Why is exporting financial services an area of opportunity for Development Bank approved a $27 million loan to Chile to support the LAC? development of services exports with a focus on non-traditional services including finance and insurance.39 Global service providers are Latin America and the Caribbean's focus on services exports has establishing operations in Latin America and the Caribbean, especially in deepened and diversified over time. While travel remains the most IT infrastructure, contact centers, and finance and accounting. And these important sector (generating almost $90 billion in 2017) and most firms are not only investing in traditional locations in the economies have traditionally specialized in tourism, some others, such as region—non-traditional markets, such as Colombia, are also considered Panama and Brazil, have a strong comparative advantage in financial viable locations for service centers.40 The improving quality of the region’s services (box 2).27 Between 2008 and 2016 LAC’s real exports of financial human resources (for example, the training of professionals in areas such services contracted by 24.4%.28 In 2017, financial services exports totaled as computer programming),41 its proximity to the United States, the about $4 billion, compared to $383 billion in the OECD high-income 12-hour time difference with Asia, the Spanish-speaking population, and economies and $6.5 billion in the Middle East.29 The downward trend in competitive costs, contribute to the region’s potential to gain a larger LAC underscores the opportunity to consolidate the presence of exports share of the world's service export market42 implying a similar of financial services in the region and capitalize on their potential benefits. development in financial services in particular. BOX 2. The case of Panama The country sought to attract high value-added investment that promotes the strengthening of human capital and technology transfer.h Panama has Panama is currently Latin America and the Caribbean's biggest exporter of also invested in energy projects to enhance the reliability of electricity and financial services, exporting almost twice the value of Brazil in 2016. telecommunications.i However, in 2008 Panama only accounted for one-third of Brazil’s exports of financial services.a One common misconception is that Panama was Tax reform also played a role in Panama’s success. Over the last two able to achieve this performance as a result of only amendments to its tax decades, Panama established and enhanced its online system for filing and regulations.b However, this is not the case; in recent years, Panama has paying taxes. Both the corporate income tax rate and payment frequency implemented broad-based reforms that facilitated its status as the were reduced, and tax returns were simplified.j Between 2014 and 2016, regional leader in financial services exports.c Panama took steps to enhance the credibility of its financial sector and amended its banking legislation to strengthen supervision and bring it in Panama’s rise to the top was supported by reforms implemented between line with international standards, improve transparency, curb tax evasion 2009 and 2014 in key sectors that established the country as a major and protect consumers. As a result of these efforts, in 2016 the Financial global trade hub and with a particular focus on the banking sector.d New Action Task Force—an intergovernmental organization that combats consumer banking products were introduced and promoted, from credit money laundering—recognized Panama’s progress and removed it from cards and mortgages to travelers checks and online banking. Corporate the agency’s grey list.k loans and commercial financing were also made available. This transformation strengthened Panama's banking sector soundness. a. WTO data downloaded on February 28, 2019. Today, capitalization and liquidity levels are relatively high, and a credit b. OECD 2019. boom has taken place in recent years.e The financial sector provides a c. Hausmann, Espinoza, and Santos 2017. wide variety of products, and competition between providers ensures d. See https://www.focus-economics.com/countries/panama. affordable rates. The sector also offers easy access to loans, high venture e. IMF 2019. capital availability and adequate securities exchange regulation. f. Putnis 2018. Moreover, the government makes no distinction between foreign and g. Republic of Panama, Ministry of Economy and Finance, Office of the domestic banks (foreign banks face the same establishment restrictions as Minister 2009. national banks).f h. UNCTAD 2017a. i. IMF 2017. To support the increasing sophistication of its banking system, Panama j. Doing Business database. strengthened higher education in financial services and infrastructure.g k. CABEI 2017. 4 Indicators Group Research Note No. 1 Conclusion The World Economic Forum’s Global Competitiveness Report identifies Chile, Jamaica and Panama as among the top 50 economies The economies of Latin America and the Caribbean have significant worldwide that enjoy a high level of financial system development. potential to export financial services. To take advantage of this Nevertheless, the average score for Latin America and the Caribbean opportunity, governments in the region can work on a variety of fronts is 59.5 of 100, behind East Asia and the Pacific, Europe and North to raise their economies’ competitiveness in this area. Two specific America, and the Middle East and North Africa, suggesting that the challenges are the availability of human capital and electronic region has room to improve banking sector soundness while ensuring infrastructure.43 The former refers to the limited number of transparency and integrity.45 Together with the Latin American professionals that, in addition to Spanish, speak the language of the Association of Service Exporters, the Inter-American Development importing economies and are adequately educated and experienced in the areas associated with services exports. The latter refers to the Bank conducted research to identify the main determinants and electronic infrastructure and digital systems that facilitate the export challenges for companies exporting services in the region. Those of financial services, but also the high cost to develop communication companies highlighted taxation and training for young professionals as schemes in the region. Consequently, LAC’s export dynamism in two of the main factors that governments in Latin America and the financial services will depend on long-term public policies and Caribbean should consider when implementing strategies to foster public-private strategies with clear objectives for promoting human competitiveness for exporting services.46 Interestingly, as discussed capital and a competitive digital ecosystem.44 above, those are also two of the drivers of financial services exports. NOTES 21 22 The City UK, PwC 2017. López and Ramos 2015. 1 WTO 2015. 23 World Bank staff calculations using AT Kearney Global Services Location Index and the value 2 World Bank staff calculation using WTO data downloaded on February 28th, 2019, and WDI GDP of exports of financial services as measured by WTO. This relationship is significant at the 5% deflator. Country-level 2016 data is used due to missing data for some LAC economies in 2017. level after controlling for GNI per capita. 3 World Bank staff calculation using WTO data downloaded on February 28th, 2019. Country 24 Australian Services Roundtable 2008. level 2016 data are used due to missing data for some LAC economies in 2017. 25 UNECLAC 2007. 4 UNCTAD 2012. 26 IMF 1999. 5 Khatun 2016. 27 OECD, WTO 2017. 6 Giordano 2016. 28 World Bank staff calculation using WTO data downloaded on February 28th, 2019, and WDI 7 UNCTAD 2017b. GDP deflator. 8 From the 12 categories defined by the United Nation’s Manual on Statistics of International 29 WTO data downloaded on February 28th, 2019. Trade in Services (2010). 30 Gabriele 2004. 9 According to the UN Manual on Statistics of International Trade in Services (2010), “other 31 UNCTAD 2017b. business services” include research and development services, professional and management 32 Arbache 2016. consulting services and technical, trade-related, and other business services; “Travel” covers 33 Verikios and Zhang 2003. goods and services for own use or to be given away, acquired from an economy by 34 Loungani and others 2017. non-residents during visits to that economy. 35 Khatun 2016. 10 Lindemane 2011. 36 UNCTAD 2012. 11 UNECLAC 2017. 37 Harms, Matto and Schuknecht 2003. 12 Prieto 2003. 38 Giordano 2016. 13 Rousseau and Sylla 2003. 39 IDB 2017. 14 United States Federal Reserve Board 2017; Credicorp 2017. 40 Deloitte 2015. 15 Lindemane 2011. 41 UNELAC 2017. 16 Bouvatier 2012. 42 IDB 2012. 17 López and Ramos 2015. 43 López and Ramos 2013. 18 Lindemane 2011. 44 UNECLAC 2017. 19 PwC 2014. 45 WEF 2018. 20 Fenton 2016. 46 López and Ramos 2015. References Arbache, Jorge. 2016. “Services and Performance of the Indian Economy.” OECD Trade Policy Papers. López, Andrés, and Daniela Ramos. 2013. “Can Knowledge Intensive Services be a New Growth Asia Matters. 2018. “Ireland as an EU Financial Services Market Location.” PwC and IFS Ireland. Engine for Latin America?” Revista Iberoamericana de Ciencia, Tecnología y Sociedad 8 (24): 83–115. ———. 2015. “Las Exportaciones de Servicios en América Latina: Factores de Competitividad, Obstáculosy Australian Services Roundtable. 2008. “Securing Australia’s Place in the Global Services Economy”. Políticas Públicas.” Red Iberoamericana de Organizaciones de Promoción de Comercio Exterior. Available at http://australianservicesroundtable.com.au/wp-content/uploads/2014/07/ASR-Submission- to-Mortimer-Review-2008.pdf. Loungani, Prakash, Saurabh Mishra, Chris Papageorgiou, and Ke Wang. 2017. “World Trade in Services: Evidence from a New Dataset.” IMF Working Paper 17/77, International Monetary Fund, Washington, DC. Bouvatier, Vincent. 2012. “Heterogeneous Bank Regulatory Standards and the Cross-Border Supply of Financial Services.” Economic Modelling, Elsevier, 40 (C): 342–54. Mason Hayes & Curran. 2015. Irish Companies Act 2014. An Outline for Asset Finance Practitioners. London. CABEI (Central American Bank for Economic Integration). 2017. Panama Country Strategy OECD and WTO (Organisation for Economic Co-Operation and Development, World Trade 2015-2019. Tegucigalpa: CABEI. Organization) 2017. Aid for Trade at a Glance: Promoting Trade, Inclusiveness and Connectivity for Sustainable Development. Paris. OECD Credicorp. 2017. Annual Report 2017 Credicorp. Lima, Peru. OECD. 2019. Multi-dimensional Review of Panama: Volume 3: From Analysis to Action, OECD Deloitte. 2015. 2015 Global Shared Services 2015 Survey Report. Deloitte: New York. Development Pathways, Paris. Fenton, Julie. 2016. “Disconnect between reality and perception in bribery and corruption.” Finance Prieto, Francisco Javier. 2003. “Fomento y Diversificación de las Exportaciones de Servicios.” Santiago: UNECLAC. Dublin, July. https://www.financedublin.com/vol/21/issue/6 Putnis, Jan. 2018. The Banking Regulation Review, Edition 9. Gabriele, Alberto. 2004. “Exports of Services and Economic Growth in Developing Countries.” United PwC. 2014. “Threats to the Financial Services Sector.” PriceWaterhouseCoopers LLP: London. Nations Conference on Trade and Development, Geneva. Republic of Panama, Ministry of Economy and Finance, Office of the Minister. 2009. Panama Giordano, Paulo. 2016. "¿Por qué es tan urgente diversificar las exportaciones?" Inter-American Government’s Strategic Plan (2010–2014). Panama City. Development Bank, Washington, DC. Rousseau, Peter L., and Richard Sylla. 2003. Financial Systems, Economic Growth, and Globalization. Harms, Philipp, Aaditya Matto and Ludger Schuknecht. 2003. “Explaining Liberalization University of Chicago Press. Commitments in Financial Services Trade.” Review of World Economics 139 (1): 86. The City UK, PwC. 2017. A Vision for a Transformed World-Leading Industry: UK-based Financial and Hausmann, Ricardo, Luis Espinoza, and Miguel Angel Santos. 2017. “Shifting Gears: A Growth Related Professional Services. The City UK and PriceWaterhouseCoopers: London. Diagnostic of Panama.” Center for International Development, Harvard University. The Tax Foundation. 2018. Corporate Income Tax Rates around the World, 2018. The Tax IBM Institute for Business Value. 2018. Global Location Trends 2018 Annual Report: Getting Ready Foundation, Washington, DC. for Globalization 4.0. New York: IBM Corporation, Armonk. UNCTAD. 2012. The Contribution of Trade in Financial Services to Economic Growth and Development. IDB (Inter-American Development Bank). 2017. “Chile to boost global services with IDB support”. Geneva: UNCTAD. Available at https://www.iadb.org/en/news/chile-boost-global-export-services-idb-support. ———. 2017a. Trade Policy Framework: Panama. Geneva: UNCTAD. ———. 2012. “IDB boosts the global service industry in Latin America and the Caribbean at the ———. 2017b. The Role of the Services Economy and Trade in Structural Transformation and Outsource2LAC Forum”. Available at https://www.iadb.org/en/news/idb-boosts-global-services- Inclusive Development. Geneva: UNCTAD. industry-latin-america-and-caribbean-outsource2lac-forum. UNECLAC (United Nations Economic Commission for Latin America and the Caribbean). 2007. Trade IMF (International Monetary Fund). 1999. “Liberalizing Capital Movements: Some Analytical Issues.” in Services in Latin America and the Caribbean: An Analysis of Recent Trends. Santiago: UNECLAC. Economic Issues 17. Washington DC: IMF. ———. 2017. International Trade Outlook for Latin America and the Caribbean 2017: Recovery in an Uncertain Context. Santiago de Chile: UNECLAC. ———. 2017. Panama: Selected issues. Washington DC: IMF. United States Federal Reserve Board. 2017. “Federal Reserve Statistical Release: Large Commercial ———. 2019. Panama: Selected issues. IMF Country Report 19/12 Washington DC: IMF. Banks.” Available at https://www.federalreserve.gov/releases/lbr/20171231/default.htm. Ireland, Central Statistics Office 2017. Verikios, George, and Xiao-guang Zhang. 2003. “Liberalising Trade in Financial Services: Global and Khatun, Rabia. 2016. “Relation Between Trade in Financial Services and Economic Growth in BRICS Regional Economic Effects.” Journal of Economic Integration 18: 307–35. Economies: Cointegration and Causality Approach.” Global Business Review 17 (1): 214–25. WEF (World Economic Forum). 2018. The Global Competitiveness Report 2018. Geneva: WEF. Lindemane, Marija. 2011. “Country’s Strategy in Export of Financial Services.” Procedia Social and WTO (World Trade Organization). 2015. Trade in Services: The Most Dynamic Segment of Behavioral Sciences (24): 970–71. International Trade. 20th Anniversary Brochures. Geneva: WTO. 5 Research and Development Center in Chile