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The determinants of trade agreements in services vs. goods

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  • Matthew T. Cole
  • Amélie Guillin

Abstract

Since Baier and Bergstrand (2004) there has been a focus on empirically testing the economic determinants of signing a free trade agreement (FTA). However, FTAs do not imply an agreement on services; a separate economic integration (EIA) is needed. As trade in services is one of the fastest growing sectors of the global economy, it is important to pay special attention to these agreements. We use the methodology of Baier and Bergstrand (2004) to investigate differences in the determinants of signing an agreement on goods trade and services trade. In addition to the standard economic variables, we include variables for skilled/unskilled labor, and political stability. We find in general, qualitative similarities (though different magnitudes) and some robust specific differences.

Suggested Citation

  • Matthew T. Cole & Amélie Guillin, 2015. "The determinants of trade agreements in services vs. goods," International Economics, CEPII research center, issue 144, pages 66-82.
  • Handle: RePEc:cii:cepiie:2015-q4-144-4
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    References listed on IDEAS

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    Cited by:

    1. Klaus H. Goetz & Ronny Patz & Katharina Michaelowa, 2017. "Resourcing International Organisations: So What?," Global Policy, London School of Economics and Political Science, vol. 8(s5), pages 113-123, August.
    2. MILE 02, Anirudh Shingal & Roy, Martin & Sauvé, Pierre, 2014. "Are Asian services markets optimal regulatory convergence areas?," Papers 719, World Trade Institute.
    3. Egger, Peter & MILE 02, Anirudh Shingal, 2014. "Determinants of services trade agreements," Papers 721, World Trade Institute.
    4. repec:bla:glopol:v:8:y:2017:i::p:113-123 is not listed on IDEAS
    5. Pierre Sauvé & Anirudh Shingal, 2016. "Why Do Economies Enter into Preferential Agreements on Trade in Services? Assessing the Potential for Negotiated Regulatory Convergence in Asian Services Markets," Asian Development Review, MIT Press, vol. 33(1), pages 56-73, March.
    6. Peter Egger & Anirudh Shingal, 2021. "Determinants of services trade agreement membership," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 157(1), pages 21-64, February.
    7. Sauvé, Pierre & Shingal, Anirudh, 2014. "Why do Countries enter into Preferential Agreements on Trade in Services? Assessing the Potential for Negotiated Regulatory Convergence in Asian Services Markets," Working Papers on Regional Economic Integration 129, Asian Development Bank.
    8. Peter H. Egger & Anirudh Shingal, 2017. "Granting preferential market access in services sequentially versus jointly with goods," The World Economy, Wiley Blackwell, vol. 40(12), pages 2901-2936, December.

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    More about this item

    Keywords

    Regional trade agreements; Services; Qualitative choice;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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