Briefing Paper 22 – THE ENGAGEMENT OF UK REGIONS IN MODE 5 SERVICES EXPORTS
Written by: Ingo Borchert, Nicolò Tamberi
The UK is one of the most services-oriented economies in the world, both in terms of production and exports. Services inputs embodied in manufacturing exports constitute an important but under-appreciated kind of services exports, so-called mode 5 services trade. This Briefing Paper provides the first estimates of mode 5 services trade disaggregated by UK region and industry, respectively, and over time. UK manufacturing exports entailed over £70 billion worth of domestic services inputs in 2017, which play an integral role in the competitiveness of UK manufacturing exports. Since these services are produced locally, changes in the trading environment for manufactures have direct implications for domestic employment in services sectors.
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