OECD Trade Policy Papers

1816-6873 (online)
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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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Hildegunn Kyvik Nordås, Dorothée Rouzet1
Author Affiliations
  • 1: OECD, France

06 Feb 2015
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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.
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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