Determinants of Services Exports Performance: The Role of Foreign Direct Investment and Existing Industrial Capabilities

This thesis examines how countries develop expertise in service exports through three interconnected studies. First, it analyses how inward foreign investment in the service sector influences different types of service exports globally. Second, it examines how inward foreign investment affects Australian firms' service exports, finding that foreign presence creates spillovers that enhance export capabilities. Finally, it reveals that knowledge from manufacturing supports specialisation in service exports, although developing countries often struggle to benefit. By focusing on the fast-growing but often overlooked service sector, this research offers practical insights for policymakers and business leaders aiming to strengthen the service sector.