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Services Trade, Regulation and Regional Integration: Evidence from Sectoral Data

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  • Erik Marel
  • Ben Shepherd

Abstract

Regulatory measures constitute a significant barrier to cross-border services trade in sectors including transport, communications, business services, insurance, and recreation. However, regulation has weaker effects on trade in financial services, distribution, and construction. Entry barriers and conduct regulations have heterogeneous effects across sectors, as do particular measures such as licensing requirements, economic needs tests, restrictions on business form, and limitations on advertising. In addition, regional trade agreements (RTAs) are trade creating in communications, finance, and distribution, but have only weak effects in other sectors. Contrary to findings for goods markets, trade diversion is relatively limited for services RTAs.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal The World Economy.

Volume (Year): 36 (2013)
Issue (Month): 11 (November)
Pages: 1393-1405

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Handle: RePEc:bla:worlde:v:36:y:2013:i:11:p:1393-1405

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References

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Citations

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Cited by:
  1. Marine George, 2013. "Does cross-border regulation really influence cross-border trade? Evidence from the Services Trade Restrictions Index," Post-Print dumas-00909960, HAL.
  2. Sauvé, Pierre & Shingal, Anirudh, 2014. "Why do Countries enter into Preferential Agreements on Trade in Services? Assessing the Potential for Negotiated Regulatory Convergence in Asian Services Markets," Working Papers on Regional Economic Integration 129, Asian Development Bank.
  3. Crozet, M. & Milet, E. & Mirza, D., 2013. "The Discriminatory Effect of Domestic Regulations on International Trade in Services: Evidence from Firm-Level Data," Working papers 451, Banque de France.
  4. Erik der Marel & Sébastien Miroudot, 2014. "The economics and political economy of going beyond the GATS," The Review of International Organizations, Springer, vol. 9(2), pages 205-239, June.

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