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The economic impact of the Services Directive: A first assessment following implementation

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  • Josefa Monteagudo
  • Aleksander Rutkowski
  • Dimitri Lorenzani
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    Abstract

    This paper estimates the economic impact of the actual implementation of the Services Directive across the Member States based on the new data on barriers to cross-border provision and to establishment for the periods before and after the Directive. It is however still an updated prediction or extrapolation exercise rather than an assessment of its full effects, because the period following the implementation of the Directive is too short to yield sufficient data. The study takes into account the domestic impact of barrier reductions on labour productivity, a novelty with respect to previous studies. It concludes that, while the likely effects of the achieved barrier reductions are large, Member States may reap yet additional significant benefits from the Directive if they continue their reform efforts. Besides the reduction of sectoral barriers, the Directive also seeks administrative simplification through the setting up of national Points of Single Contact (PSC). The study estimates an approximate possible economic impact of setting up PSC through the new establishments of service activities. Again it demonstrates that Member States can reap significant additional gains by improvements in the PSC.

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    File URL: http://ec.europa.eu/economy_finance/publications/economic_paper/2012/ecp456_en.htm
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    Bibliographic Info

    Paper provided by Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission in its series European Economy - Economic Papers with number 456.

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    Length: 86 pages
    Date of creation: Jun 2012
    Date of revision:
    Handle: RePEc:euf:ecopap:0456

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    Cited by:
    1. Nadine Behncke, 2013. "Assessing the impact of European Integration on sectoral trade in services," FIW Working Paper series 109, FIW.

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