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The Discriminatory Effect of Domestic Regulations on International Trade in Services: Evidence from Firm-Level Data

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Listed:
  • Crozet, M.
  • Milet, E.
  • Mirza, D.

Abstract

In order to promote international trade in services, the WTO-GATS aims at progressively eliminating discriminatory regulations, which apply to foreign suppliers, by guaranteeing equal national treatment. This paper looks instead at the trade effect of domestic regulations, which apply to all firms indifferently and do not intend to exclude foreign suppliers. We propose a theory-based empirical test to determine whether or not these domestic regulations affect foreign suppliers more than local ones. We take this test to the data by using French firm-level exports of professional services to OECD countries. Our econometric results show that domestic regulations in the importing markets matter significantly for trade in services. They reduce both the decision to export and the individual exports. These results tend to prove that domestic regulations are de facto discriminatory even if they are not de jure.

Suggested Citation

  • Crozet, M. & Milet, E. & Mirza, D., 2013. "The Discriminatory Effect of Domestic Regulations on International Trade in Services: Evidence from Firm-Level Data," Working papers 451, Banque de France.
  • Handle: RePEc:bfr:banfra:451
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    Cited by:

    1. Vaillant, Marcel, 2012. "How to encourage network trade rules interconnections? an application to the case of non tariff barriers," MPRA Paper 47254, University Library of Munich, Germany, revised Jun 2012.
    2. Berman, Nicolas & Berthou, Antoine & Héricourt, Jérôme, 2015. "Export dynamics and sales at home," Journal of International Economics, Elsevier, vol. 96(2), pages 298-310.
    3. Fontagné, Lionel & Orefice, Gianluca & Piermartini, Roberta & Rocha, Nadia, 2015. "Product standards and margins of trade: Firm-level evidence," Journal of International Economics, Elsevier, vol. 97(1), pages 29-44.
    4. repec:hal:journl:dumas-00909960 is not listed on IDEAS
    5. Sarra Ben Yahmed & Sean Dougherty, 2012. "Import Competition, Domestic Regulation and Firm-Level Productivity Growth in the OECD," OECD Economics Department Working Papers 980, OECD Publishing.
    6. Elisabeth Christen & Michael Pfaffermayr & Yvonne Wolfmayr, 2017. "Decomposing Service Exports Adjustments along the Intensive and Extensive Margin at the Firm-Level," WIFO Working Papers 537, WIFO.
    7. Dincer, N. Nergiz & Tekin-Koru, Ayca, 2017. "Gains from trade due to within-firm productivity: Does services exporting matter?," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 11, pages 1-17.
    8. David R. DeRemer, 2015. "Opportunities for Cooperation in Removing Prohibitive Trade Barriers," IEHAS Discussion Papers 1533, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
    9. Lionel Fontagné & Gianluca Orefice & Roberta Piermartini & Nadia Rocha, 2015. "Product Standards and Margins of Trade: Firm-Level Evidence Product Standards and Margins of Trade: Firm-Level Evidence," PSE - Labex "OSE-Ouvrir la Science Economique" hal-01299757, HAL.
    10. Dincer, Nergiz & Tekin-Koru, Ayça, 2015. "A League of Their Own: Services Exporters –A Developing Country Perspective-," MPRA Paper 64363, University Library of Munich, Germany.
    11. Dincer, Nergiz & Tekin-Koru, Ayca, 2014. "A League of Their Own: Services Exporters within Goods Exporters," MPRA Paper 53294, University Library of Munich, Germany.

    More about this item

    Keywords

    Trade in services; Domestic Regulations; Firm Heterogeneity.;

    JEL classification:

    • F1 - International Economics - - Trade
    • L8 - Industrial Organization - - Industry Studies: Services

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