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Services Trade Policies and Economic Integration: New Evidence for Developing Countries

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  • Hoekman, Bernard
  • Shepherd, Ben

Abstract

This paper applies machine learning to recreate to a high degree of accuracy the OECD's Services Trade Restrictiveness Index (STRI) to provide quantitative evidence on the restrictiveness of services policies in 2016 for a sample of developing countries, using regulatory data collected by the World Bank and WTO. Resulting estimates are used to extend the OECD STRI approach to 23 additional countries, producing what we term a Services Policy Index (SPI). Converting the SPI to ad valorem equivalent terms shows that services policies are typically much more restrictive than tariffs on imports of goods, in particular in professional services and telecommunications. The SPI has strong explanatory power for bilateral trade in services at the sectoral level, as well as for aggregate goods and services trade.

Suggested Citation

  • Hoekman, Bernard & Shepherd, Ben, 2021. "Services Trade Policies and Economic Integration: New Evidence for Developing Countries," World Trade Review, Cambridge University Press, vol. 20(1), pages 115-134, February.
    • Handle: RePEc:cup:wotrrv:v:20:y:2021:i:1:p:115-134_7
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    Cited by:

    1. Hoekman,Bernard M., 2020. "Facilitating Trade in Services," Policy Research Working Paper Series 9228, The World Bank.
    2. Michael Landesmann & Sandra M. Leitner, 2023. "Immigration and Offshoring: two forces of globalisation and their impact on employment and the bargaining power of occupational groups," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 159(2), pages 361-397, May.
    3. Estrades Pineyrua,Carmen & Maliszewska,Maryla & Osorio-Rodarte,Israel & Seara E Pereira,Maria Filipa, 2022. "Estimating the Economic and Distributional Impacts of the Regional Comprehensive Economic Partnership," Policy Research Working Paper Series 9939, The World Bank.
    4. Zauresh Atakhanova, 2021. "Kazakhstan’s oil boom, diversification strategies, and the service sector," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 34(3), pages 399-409, October.
    5. Matteo Fiorini & Bernard Hoekman & Dennis Quinn, 2023. "Services trade policy and industry performance in African economies," The World Economy, Wiley Blackwell, vol. 46(2), pages 382-395, February.

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    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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