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Effect of the Service Directive on Wholesale and Retail Companies: Diff in Diff in Diff Evidence

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  • Vojtech Olbrecht

    (Department of Business Economics, Faculty of Business and Economics, Mendel university in Brno, Zemedelska 1, 613 00 Brno, Czech Republic)

Abstract

The Service Directive puts into motion the free movement of service, one of the milestones of the Single Market of the European Union. Though very ambitious at its draft, several adjustments have been made and it is argued whether the final Directive is helpful at all. This article aims to answer the question by focusing on productivity of affected companies with use of two distinct control groups and employing Difference-in-difference-in-difference design on firm-level data. The article finds that the Service Directive significantly increased productivity of companies though the results cannot be labelled as profoundly causal as is further discussed in the article.

Suggested Citation

  • Vojtech Olbrecht, 2016. "Effect of the Service Directive on Wholesale and Retail Companies: Diff in Diff in Diff Evidence," MENDELU Working Papers in Business and Economics 2016-61, Mendel University in Brno, Faculty of Business and Economics.
    • Handle: RePEc:men:wpaper:61_2016
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    References listed on IDEAS

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    1. Harald Badinger & Niklas Maydell, 2009. "Legal and Economic Issues in Completing the EU Internal Market for Services: An Interdisciplinary Perspective," Journal of Common Market Studies, Wiley Blackwell, vol. 47(4), pages 693-717, September.
    2. Harald Badinger & Niklas Maydell, 2009. "Legal and Economic Issues in Completing the EU Internal Market for Services: An Interdisciplinary Perspective," Journal of Common Market Studies, Wiley Blackwell, vol. 47(4), pages 693-717, September.
    3. Micheline Goedhuys & Martin Srholec, 2015. "Technological Capabilities, Institutions and Firm Productivity: A Multilevel Study," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 27(1), pages 122-139, January.
    4. Josefa Monteagudo & Aleksander Rutkowski & Dimitri Lorenzani, 2012. "The economic impact of the Services Directive: A first assessment following implementation," European Economy - Economic Papers 2008 - 2015 456, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
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    Cited by:

    1. Milena Kern & Jörg Paetzold & Hannes Winner, 2021. "Cutting red tape for trade in services," The World Economy, Wiley Blackwell, vol. 44(10), pages 2858-2886, October.

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    More about this item

    Keywords

    Service Directive; European Union; Difference-in-Difference-in-Difference; Law and Economics;
    All these keywords.

    JEL classification:

    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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