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Trade Agreements, Regulatory Institutions and Services Liberalization

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  • Matteo Fiorini
  • Bernard Hoekman

Abstract

Many agreements to liberalize trade in services tend to be limited in scope. This is a puzzle considering the high share of services in total employment and value added and relatively high barriers to trade in services in many countries. In this paper we argue that neglected complementarities between services trade policies and domestic regulation may help to understand the limited ambition on services observed in many trade agreements. We show that the productivity effects of services trade liberalization are conditional on regulatory quality. Our findings suggest that greater effort to design trade agreements with a view to improving regulatory quality may be a necessary condition for deepening the services coverage of trade agreements and will enhance the welfare gains from services trade liberalization.

Suggested Citation

  • Matteo Fiorini & Bernard Hoekman, 2018. "Trade Agreements, Regulatory Institutions and Services Liberalization," Global Policy, London School of Economics and Political Science, vol. 9(4), pages 441-450, November.
  • Handle: RePEc:bla:glopol:v:9:y:2018:i:4:p:441-450
    DOI: 10.1111/1758-5899.12583
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    Cited by:

    1. Matteo Fiorini & Bernard Hoekman, 2020. "EU services trade liberalization and economic regulation: Complements or substitutes?," The Review of International Organizations, Springer, vol. 15(1), pages 247-270, January.
    2. Munemo, Jonathan, 2022. "Export entrepreneurship promotion: The role of regulation-induced time delays and institutions," International Review of Economics & Finance, Elsevier, vol. 77(C), pages 262-275.
    3. Oleksandr Shnyrkov & Rita Zablotska & Oleksii Chugaiev, 2019. "The Impact Of Institutions On Services Exports Of Central And Eastern European Countries," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 5(5).
    4. Olga Biryukova, 2022. "Joint Initiative on Services Domestic Regulation in the WTO: The Case of Russia," Global Policy, London School of Economics and Political Science, vol. 13(4), pages 594-605, September.
    5. Roy, Martin, 2019. "Elevating services: Services trade policy, WTO commitments, and their role in economic development and trade integration," WTO Staff Working Papers ERSD-2019-01, World Trade Organization (WTO), Economic Research and Statistics Division.
    6. Jonathan Munemo, 2022. "The effect of regulation‐driven trade barriers and governance quality on export entrepreneurship," Regulation & Governance, John Wiley & Sons, vol. 16(4), pages 1119-1140, October.

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