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The free movement of services within the EU Author info | Abstract | Publisher info | Download info | Related research | Statistics Henk Kox ()
Arjan Lejour ()
Raymond Montizaan
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Intra-European trade in services is hampered by national regulatory differences for service markets. The European Commission has proposed a new directive to overcome these regulatory barriers. This document assesses the effects of this new directive on trade and investment in services. We have developed an index for bilateral heterogeneity in product-market regulation, and apply it to the OECD Regulation Database. We show that the heterogeneity in regulation hampers bilateral service trade in the EU, and also bilateral direct investment. We investigate how the proposed EU directive could lower the intra-EU heterogeneity in product market regulation for services, and what effect this would have on bilateral trade and investment in the Internal Market for services.
We find that commercial services trade in the EU might increase by 15-30%, while the foreign direct investment stock in services might rise by 20-35%.
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Paper provided by CPB Netherlands Bureau for Economic Policy Analysis in its series CPB Documents with number
69.
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Date of creation: Oct 2004Date of revision:
Handle: RePEc:cpb:docmnt:69Contact details of provider: Postal: Postbus 80510, 2508 GM Den Haag Phone: (070) 338 33 80 Fax: (070) 338 33 50 Email: Web page: http://www.cpb.nl/ More information through EDIRC
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Keywords: EU ; internal market ; services ; service trade ; direct investment ; regulatory barriers ; gravity model ; Other versions of this item:
Find related papers by JEL classification: F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations F15 - International Economics - - Trade - - - Economic Integration F17 - International Economics - - Trade - - - Trade Forecasting and Simulation F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business L5 - Industrial Organization - - Regulation and Industrial Policy L8 - Industrial Organization - - Industry Studies: Services
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
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