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The effect of border barriers to services trade on goods trade

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  • Nazire Nergiz Dincer
  • Ayça Tekin‐Koru

Abstract

This paper has two objectives (a) to introduce border policy‐induced barriers (PIBs) to services trade and (b) analyse the impact of border PIBs in services sectors on goods trade. The World Input‐Output Database covering 43 countries is used over the period 2000–14. A three‐stage analysis is employed. The measures of bilateral services trade barriers calculated in each services sector in the first stage are decomposed into its cultural/geographic and policy‐induced parts in the second stage. Border PIBs to services trade are used in the structural gravity estimations of bilateral goods trade in the final stage. The results demonstrate significant and robust adverse effects of barriers to services trade on goods trade. When the level of development is taken into consideration, there are marked differences in the impact of these barriers on goods trade.

Suggested Citation

  • Nazire Nergiz Dincer & Ayça Tekin‐Koru, 2020. "The effect of border barriers to services trade on goods trade," The World Economy, Wiley Blackwell, vol. 43(8), pages 2093-2118, August.
    • Handle: RePEc:bla:worlde:v:43:y:2020:i:8:p:2093-2118
    DOI: 10.1111/twec.12944
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    3. Jie Zhang & Yunfeng Shang, 2022. "The Influence and Mechanism of Digital Economy on the Development of the Tourism Service Trade—Analysis of the Mediating Effect of Carbon Emissions under the Background of COP26," Sustainability, MDPI, vol. 14(20), pages 1-20, October.
    4. Lin, Qi & Lin, Xi, 2023. "Unveiling the trade and welfare effects of regional services trade agreements: A structural gravity approach," Economic Modelling, Elsevier, vol. 127(C).
    5. Halit Yanikkaya & Abdullah Altun & Pinar Tat, 2019. "Openness and Deindustrialization: A Turkish Case," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 33(2), pages 1-25.

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    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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