The Internal Market for Services of the European Union - Evidence from the OECD-Panel Data
AbstractThe European Union service sector hampers many regulations by the Member States. For this reason, the European Commission issued a directive to reduce regulations and raise competition. We update the study from Kox, Lejourr and Montizaan (2005) with the latest changes of the directive on services o the internal market. Based on OECD-Panel data, we are able to develop a linear service trade model to investigate the economic benefit of such a directive. Our results show that the volume of service trade would decline with a between 2.6%-5.4%. This surprising outcome is contrary to previous results from Kox, Lejour and Montizaan (2005) or Breuss and Badinger (2005). We show that this is due to the latest modification in the service directive.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 11441.
Date of creation: 01 Sep 2008
Date of revision:
Regulatory Barriers; OECD Panel Data; Service Trade; European Union;
Find related papers by JEL classification:
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
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- Henk Kox & Arjan Lejour & Raymond Montizaan, 2004. "The free movement of services within the EU," CPB Document 69, CPB Netherlands Bureau for Economic Policy Analysis.
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- Bianka Dettmer, 2012. "The European Union's service directive: Contrasting ex ante estimates with empirical evidence," Jena Economic Research Papers 2012-019, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- Nadine Behncke, 2013. "Assessing the impact of European Integration on sectoral trade in services," FIW Working Paper series 109, FIW.
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