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The Impact of Liberalizing Trade in Services on Trade in Goods: An Empirical Investigation

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  • Juan Blyde
  • Natalia Sinyavskaya

Abstract

In this paper we use a large dataset to explore whether the liberalization of trade in services is beneficial for the international trade in goods. We find empirical evidence supporting this notion. We investigate which types of trade in services are more important for the international trade in goods and find that trade in transportation and communication services generate the largest impacts on trade in goods. We also investigate which types of trade in goods are likely to benefit from the liberalization of trade in services and find that, under the 2-digit ISTC classification, all the categories are likely to exhibit a positive impact. Copyright � 2007 The Authors; Journal compilation � 2007 Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of Development Economics.

Volume (Year): 11 (2007)
Issue (Month): 3 (08)
Pages: 566-583

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Handle: RePEc:bla:rdevec:v:11:y:2007:i:3:p:566-583

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669

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Cited by:
  1. Joshua Aizenman & Ilan Noy, 2005. "FDI and Trade -- Two Way Linkages?," NBER Working Papers 11403, National Bureau of Economic Research, Inc.
  2. Park, Innwon & Park, Soonchan, 2010. "Regional Liberalization of Trade in Services," MPRA Paper 19758, University Library of Munich, Germany.
  3. Shepherd, Ben & Pasadilla, Gloria, 2012. "Services as a New Engine of Growth for ASEAN, the People’s Republic of China, and India," ADBI Working Papers 349, Asian Development Bank Institute.
  4. Bianka Dettmer, 2012. "Business services outsourcing and economic growth: Evidence from a dynamic panel data approach," Jena Economic Research Papers 2012-049, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.

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