OECD Trade Policy Papers

ISSN: 
1816-6873 (online)
http://dx.doi.org/10.1787/18166873
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This series is designed to make available to a wider readership selected trade policy studies prepared for use within the OECD.

NB. No. 1 to No. 139 were released under the previous series title OECD Trade Policy Working Papers.

 

The Impact of Services Trade Restrictiveness on Trade Flows

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English
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Author(s):
Hildegunn Kyvik Nordås, Dorothée Rouzet1
Author Affiliations
  • 1: OECD, France

06 Feb 2015
Bibliographic information
No.:
178
Pages:
40
http://dx.doi.org/10.1787/5js6ds9b6kjb-en

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This paper uses newly released OECD data on services trade restrictions (STRI) to analyse the relationship between services trade restrictions, cross-border trade in services and trade in downstream manufactured goods. A standard gravity model is enhanced by the STRI indices in a cross-section regression analysis. Services trade restrictions are negatively associated with both imports and exports of services. The surprisingly strong effect on services exports is probably explained by a negative relationship between the STRIs and sector performance indices. Consequently, services suppliers are less competitive abroad. A negative relationship is also found between the STRI indices and exports, imports and intra-industry trade in manufactured goods. The statistical significance and the elasticities vary across services and goods sectors in ways that intuitively make sense.
Keywords:
services trade restrictions, trade in services, regulatory spillovers
JEL Classification:
  • F13: International Economics / Trade / Trade Policy ; International Trade Organizations
  • F14: International Economics / Trade / Empirical Studies of Trade
  • F68: International Economics / Economic Impacts of Globalization / Policy
 
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