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The Impact of Mode 4 Liberalization on Bilateral Trade Flows

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  • Jansen, Marion
  • Piermartini, Roberta

Abstract

This paper gives insights into the possible trade creating effects of service trade liberalization via Mode 4. In particular we expect that temporary movements of persons, like permanent movements, have the potential to reduce transaction costs for merchandise trade between home and host country. Exploiting data on H-1B beneficiaries from different origins in the United States and using a gravity model of trade, we find significantly positive effects of temporary movements of persons on bilateral merchandise trade. In addition to this, the paper provides insights into the determinants of temporary movements of persons.

Suggested Citation

  • Jansen, Marion & Piermartini, Roberta, 2005. "The Impact of Mode 4 Liberalization on Bilateral Trade Flows," CEPR Discussion Papers 5382, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:5382
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    Cited by:

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    2. Gordon H. Hanson, 2009. "The Economic Consequences of the International Migration of Labor," Annual Review of Economics, Annual Reviews, vol. 1(1), pages 179-208, May.
    3. Masood Gheasi & Peter Nijkamp & Piet Rietveld, 2013. "Migration and foreign direct investment: education matters," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(1), pages 73-87, August.
    4. Soana Jaupllari (Teka) & Olta Zoto, 2013. "Understanding Industrial Innovation and Upgrade from Modularization’s Perspective," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 3(6), pages 1-10, December.
    5. Giuseppe Bertola & Lorenza Mola, 2010. "Services Provision and Temporary Mobility: Freedoms and Regulation in the EU," The World Economy, Wiley Blackwell, vol. 33(4), pages 633-653, April.
    6. Suparna Karmakar, 2010. "GATS : Domestic Regulations versus Market Access," Working Papers id:2903, eSocialSciences.
    7. Koopmann Georg & Straubhaar Thomas, 2009. "Zur Internationalisierung des Dienstleistungssektors," Review of Economics, De Gruyter, vol. 60(2), pages 81-102, August.
    8. Prud'homme, Dan, 2011. "An SIA analysis of the Investment Chapter in the EU-Canada Comprehensive Economic and Trade Agreement (CETA)," MPRA Paper 44014, University Library of Munich, Germany.
    9. Jacques Poot & Anna Strutt, 2010. "International Trade Agreements and International Migration," The World Economy, Wiley Blackwell, vol. 33(12), pages 1923-1954, December.
    10. Sajitha Beevi Karayil, 2021. "Movement of natural persons and the sieve of immigration policy: Evidence from United States," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 157(4), pages 853-879, November.
    11. Kirkpatrick, Colin & Raihan, Selim & Bleser, Adam & Prud'homme, Dan & Mayrand, Karel & Morin, Jean Frederic & Pollitt, Hector & Hinojosa, Leonith & Williams, Michael, 2011. "Trade sustainability impact assessment (SIA) on the comprehensive economic and trade agreement (CETA) between the EU and Canada: Final report," MPRA Paper 28812, University Library of Munich, Germany.
    12. Roger White & Bedassa Tadesse, 2011. "International Migration and Economic Integration," Books, Edward Elgar Publishing, number 14318.
    13. Simontini Das & Ajitava Raychaudhuri & Saikat Sinha Roy, 2012. "Immigration Versus Outsourcing: A Developing Country¡¯S View," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 37(2), pages 109-138, June.

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    More about this item

    Keywords

    Mode 4; Bilateral trade flows; Services liberalization; Wto;
    All these keywords.

    JEL classification:

    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • F29 - International Economics - - International Factor Movements and International Business - - - Other

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