IDEAS home Printed from https://ideas.repec.org/a/wsi/jicepx/v05y2014i01ns1793993314400031.html
   My bibliography  Save this article

Policy restrictions and services performance: Evidence from 32 countries

Author

Listed:
  • Xiaobo He

    (Global Food Studies, University of Adelaide, Adelaide SA 5005, Australia)

  • Christopher Findlay

    (Faculty of the Professions, University of Adelaide, Adelaide SA 5005, Australia)

Abstract

The impact of services trade and investment policy which affects the performance of the service sector is the topic of this paper. The performance indicator is not the services share of total output but the services shares in the gross value of goods exports. We find that a more restrictive environment for services delivery is associated with a lower services share in exports, but with a diminishing effect. The results remain robust even after extra measures of the ease of doing business (such as number of documents to export, number of days to export and "rank of trading across borders") are included. There is a significant relationship between policy and the share of services from domestic origin, including those from foreign invested firms, in exports, but not with the share of services from offshore sources. This result indicates that at present the more important impact of services policy reforms is via the establishment of new providers, rather than via trade across borders. This causal channel has important consequences for the political economy of reforms in services.

Suggested Citation

  • Xiaobo He & Christopher Findlay, 2014. "Policy restrictions and services performance: Evidence from 32 countries," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(01), pages 1-19.
    • Handle: RePEc:wsi:jicepx:v:05:y:2014:i:01:n:s1793993314400031
    DOI: 10.1142/S1793993314400031
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S1793993314400031
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S1793993314400031?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jens Matthias Arnold & Beata Javorcik & Molly Lipscomb & Aaditya Mattoo, 2016. "Services Reform and Manufacturing Performance: Evidence from India," Economic Journal, Royal Economic Society, vol. 126(590), pages 1-39, February.
    2. Andrew K. Rose, 2007. "The Foreign Service and Foreign Trade: Embassies as Export Promotion," The World Economy, Wiley Blackwell, vol. 30(1), pages 22-38, January.
    3. Anirudh Shingal, 2014. "Services globalization and sub-national demand linkages: The case of India," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(01), pages 1-23.
    4. Borchert, Ingo & Gootiiz, Batshur & Mattoo, Aaditya, 2012. "Guide to the services trade restrictions database," Policy Research Working Paper Series 6108, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xiying Zhang & Yihuan Wang, 2022. "Research on the Influence of Digital Technology and Policy Restrictions on the Development of Digital Service Trade," Sustainability, MDPI, vol. 14(16), pages 1-16, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ana Paula Cusolito & Claire H. Hollweg, 2015. "Trade Policy Barriers: An Obstacle to Export Diversification in Eurasia," Journal of Banking and Financial Economics, University of Warsaw, Faculty of Management, vol. 2(4), pages 91-129, June.
    2. Beverelli, Cosimo & Fiorini, Matteo & Hoekman, Bernard, 2017. "Services trade policy and manufacturing productivity: The role of institutions," Journal of International Economics, Elsevier, vol. 104(C), pages 166-182.
    3. repec:sgm:jbfeuw:v:2:y:2015:i:4:p:39 is not listed on IDEAS
    4. Zongo, Amara, 2021. "The impact of services trade restrictiveness on food trade," International Economics, Elsevier, vol. 166(C), pages 71-94.
    5. Bernard Hoekman & Ben Shepherd, 2017. "Services Productivity, Trade Policy and Manufacturing Exports," The World Economy, Wiley Blackwell, vol. 40(3), pages 499-516, March.
    6. Rahul Anand & Ms. Kalpana Kochhar & Mr. Saurabh Mishra, 2015. "Make in India: Which Exports Can Drive the Next Wave of Growth?," IMF Working Papers 2015/119, International Monetary Fund.
    7. Barry Eichengreen & Arnaud Mehl & Livia Chiţu & Thorsten Beck, 2019. "Mars or Mercury? The geopolitics of international currency choice," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 34(98), pages 315-363.
    8. Ingo Borchert & Batshur Gootiiz & Aaditya Mattoo, 2014. "Policy Barriers to International Trade in Services: Evidence from a New Database," The World Bank Economic Review, World Bank, vol. 28(1), pages 162-188.
    9. Ariu, Andrea & Breinlich, Holger & Corcos, Gregory & Mion, Giordano, 2019. "The interconnections between services and goods trade at the firm-level," Journal of International Economics, Elsevier, vol. 116(C), pages 173-188.
    10. Stefania Lovo & Gonzalo Varela, 2022. "Internationally Linked Firms and Productivity in Pakistan: A Look at the Top End of the Distribution," Journal of Development Studies, Taylor & Francis Journals, vol. 58(10), pages 2110-2131, October.
    11. Benjamin E. Bagozzi & Ore Koren, 2020. "The Diplomatic Burden of Pandemics: The Case of Malaria," HiCN Working Papers 330, Households in Conflict Network.
    12. Shon Ferguson & Rikard Forslid, 2019. "Sizing Up the Impact of Embassies on Exports," Scandinavian Journal of Economics, Wiley Blackwell, vol. 121(1), pages 278-297, January.
    13. Christian Volpe Martincus & Jerónimo Carballo, 2010. "Is Export Promotion Effective in Developing Countries? Firm-Level Evidence on the Intensive and Extensive Margins of Exports," IDB Publications (Working Papers) 36763, Inter-American Development Bank.
    14. Pedro Albarran & Raquel Carrasco & Adelheid Holl, 2013. "Domestic transport infrastructure and firms’ export market participation," Small Business Economics, Springer, vol. 40(4), pages 879-898, May.
    15. Dan Ciuriak, 2014. "The Impact of Diplomatic Representation Abroad on Canada’s Exports," e-briefs 173, C.D. Howe Institute.
    16. Cadot, Olivier & Fernandes, Ana M. & Gourdon, Julien & Mattoo, Aaditya, 2015. "Are the benefits of export support durable? Evidence from Tunisia," Journal of International Economics, Elsevier, vol. 97(2), pages 310-324.
    17. Mustansar, Talreja, 2023. "Financial innovation, technological improvement and bank’ profitability," OSF Preprints 8wy95, Center for Open Science.
    18. Defever, Fabrice & Imbruno, Michele & Kneller, Richard, 2020. "Trade liberalization, input intermediaries and firm productivity: Evidence from China," Journal of International Economics, Elsevier, vol. 126(C).
    19. Aurora Castro Teixeira & Maria João Barros, 2014. "Local municipalities’ involvement in promoting the internationalisation of SMEs," Local Economy, London South Bank University, vol. 29(1-2), pages 141-162, February.
    20. Magnus Lodefalk, 2014. "The role of services for manufacturing firm exports," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(1), pages 59-82, February.
    21. 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.

    More about this item

    Keywords

    Services trade restrictiveness index (STRI); trade in valueadded (TiVA); OECD; developing countries; F13; F14; F60;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F60 - International Economics - - Economic Impacts of Globalization - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:jicepx:v:05:y:2014:i:01:n:s1793993314400031. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/jicep/jicep.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.