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Services trade, regulation, and regional integration: Evidence from sectoral data

  • Van Der Marel, Erik
  • Shepherd, Ben

Regulatory measures constitute a significant barrier to cross-border services trade in sectors including transport, communications, business services, insurance, and recreation. However, regulation has weaker effects on trade in financial services, distribution, and construction. Entry barriers and conduct regulations have heterogeneous effects across sectors, as do particular measures such as licensing requirements, economic needs tests, restrictions on business form, and limitations on advertising. In addition, regional trade agreements (RTAs) are trade creating in communications, finance, and distribution, but have only weak effects in other sectors. Contrary to findings for goods markets, trade diversion is relatively limited for services RTAs.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 34343.

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Date of creation: 07 Sep 2011
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Handle: RePEc:pra:mprapa:34343
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