Minondo, Asier (2012): Are trade costs higher for services than for manufactures? Evidence from firm-level data.
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Using a unique database, I estimate the costs of trading with European Union countries, relative to the costs of trading with the domestic market, for services and manufacturing firms located in the Basque Country region of Spain. I find that, despite the dramatic improvement in information and communication technologies, international trade costs for services are still much larger than for manufactures. Based on standard elasticities of substitution used in the literature, our results suggest that the tariff equivalent of international trade costs is between 50% and 60% larger for services than for manufactures.
|Item Type:||MPRA Paper|
|Original Title:||Are trade costs higher for services than for manufactures? Evidence from firm-level data|
|Keywords:||trade costs; exports; services; manufactures; firm-level evidence; Basque-Country|
|Subjects:||F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms; International Business
F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade
F - International Economics > F1 - Trade > F19 - Other
|Depositing User:||Asier Minondo|
|Date Deposited:||25. Jan 2012 20:09|
|Last Modified:||12. Feb 2013 11:11|
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