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Services versus Goods Trade: Are They the Same?

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  • Andrea ARIU

    ()
    (FNRS and UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

Abstract

In this paper we compare static and dynamic features of trade in goods and trade in services at the micro level. By using data from the same country, Belgium, and by making use of a common definition of transaction, we are able to enrich the existing qualitative comparisons with quantitative insights and to fill the existing gap in the literature. First, we analyze static features of trade such as participation rates, firms characteristics, heterogeneity, concentration and trade variation. Then, we explore dynamic aspects focusing on entry, exit, survival and growth strategy in foreign markets. From a static perspective, our results reveal that there are limited qualitative differences between trade in goods and trade in services and even the quantitative ones do not justify the need of different theoretical models. In the time dimension instead, some key peculiarities of services offer new insights for differentiating between the two.

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Bibliographic Info

Paper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 2013015.

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Length: 25
Date of creation: 20 Jul 2013
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Handle: RePEc:ctl:louvir:2013015

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Keywords: Trade in Services; Trade in Goods; Trade Dynamics;

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Cited by:
  1. Matthieu Crozet & Emmanuel Milet & Daniel Mirza, 2013. "The Discriminatory Effect of Domestic Regulations on International Trade in Services: Evidence from Firm-Level Data," Documents de travail du Centre d'Economie de la Sorbonne, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne 13019, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  2. Yvonne Wolfmayr & Elisabeth Christen & Michael Pfaffermayr, 2013. "Pattern, Determinants and Dynamics of Austrian Service Exports – A Firmlevel Analysis," FIW Research Reports series, FIW IV-005, FIW.
  3. Dincer, Nergiz & Tekin-Koru, Ayca, 2014. "A League of Their Own: Services Exporters within Goods Exporters," MPRA Paper 53294, University Library of Munich, Germany.
  4. Minondo, Asier, 2012. "Trading firms in the Spanish services sector," MPRA Paper 43224, University Library of Munich, Germany.

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