Miroudot, Sébastien and Sauvage, Jehan and Shepherd, Ben (2010): Measuring the Cost of International Trade in Services.
Download (205kB) | Preview
We present a new dataset of international trade costs in services sectors. Using a theory-based methodology combined with data on domestic shipments and cross-border trade, we find that trade costs in services are much higher than in goods sectors: a multiple of two to three times in many cases. Trade costs in services have remained relatively steady over the last ten years, whereas trade costs in goods have fallen overall at an impressive rate. We also present two examples of the ways in which our dataset could be used in future work. First, we examine the impact of regional trade agreements on trade costs in services. Although we find that intra-bloc trade costs are lower than those facing outside countries, the differential is usually quite small for services, and in some cases has even been narrowing over time. This finding accords with the observation that because service sector reform is about re-regulation, “preferential” agreements tend to involve less discrimination than in goods markets. Second, we show for the first time that services sectors with lower trade costs tend to be more productive, and experience faster productivity growth. This result lines up well with the evidence from goods markets.
|Item Type:||MPRA Paper|
|Original Title:||Measuring the Cost of International Trade in Services|
|Keywords:||Trade policy; Trade in services; Regional integration; Productivity.|
|Subjects:||F - International Economics > F1 - Trade > F15 - Economic Integration
F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations
|Depositing User:||Ben Shepherd|
|Date Deposited:||04. Jan 2011 08:04|
|Last Modified:||31. Dec 2015 16:38|
Anderson, J. E., van Wincoop, E., September 2004. Trade costs. Journal of Economic Literature 42 (3), 691–751.
Breinlich, H., Criscuolo, C., Dec. 2008. Service traders in the uk. CEP Discussion Papers dp0901, Centre for Economic Performance, LSE.
Broda, C., Greenfield, J., Weinstein, D., Sep. 2006. From groundnuts to globalization: A structural estimate of trade and growth. NBER Working Papers 12512, National Bureau of Economic Research, Inc.
Chaney, T., September 2008. Distorted gravity: The intensive and extensive margins of international trade. American Economic Review 98 (4), 1707–21.
Dee, P., 2003. Modelling the policy issues in services trade. Economie Internationale (2Q-3Q), 283–300.
Marchetti, J. A., Roy, M., 2008. Services liberalization in the WTO and in PTAs. In: Marchetti, J. A., Roy, M. (Eds.), Opening Markets for Trade in Services. Countries and Sectors in Bilateral and WTO Negotiations. Cambridge University Press, pp. 61–112.
Mattoo, A., 2004. The services dimension of china’s accession to the wto. In: Deepak Bhattasali, S. L., Martin,W. (Eds.), China and the WTO: Accession, Policy Reform, and Poverty Reduction Strategies. World Bank.
Miroudot, S., Lanz, R., Ragoussis, A., 2009. Trade in intermediate goods and services. OECD Trade Policy Working Paper 93, OECD.
Novy, D., November 2009. Gravity redux: Measuring international trade costs with panel data, mimeo.
O’Mahony, M., Timmer, M. P., 2009. Output, input and productivity measures at the industry level: The eu klems database. The Economic Journal 119, 374–403.
Pavcnik, N., January 2002. Trade liberalization, exit, and productivity improvement: Evidence from chilean plants. Review of Economic Studies 69 (1), 245–76.
VanDerMarel, E., Forthcoming. What determines services tfp: Services trade or services trade regulation? Working paper, GEM Sciences Po.
Walsh, K., Nov. 2006. Trade in services: Does gravity hold? a gravity model approach to estimating barriers to services trade. The Institute for International Integration Studies Discussion Paper Series iiisdp183, IIIS.
WTO, 2009. World Trade Report 2009. WTO.