Services exports and structural transformation in Asia-Pacific LDCs: Stubborn challenges, new opportunities

This paper examines linkages between services exports and structural transformation in Asia-Pacific least developed countries, using data for the period 2005–2022. Through descriptive statistics and correlation analysis, the results indicate strong linkages between traditional as well as digitally deliverable services exports and manufacturing-led structural transformation globally but relatively weak connections for least developed countries. Two underlying factors — weaker uptake of digital services trade in least developed countries and delayed recovery from the COVID-19 pandemic — drive these findings. The results underscore the need to support these countries to increase services exports, particularly digitally deliverable services, to accelerate structural transformation.