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

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  • Van Der Marel, Erik
  • Shepherd, Ben

Abstract

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.

Suggested Citation

  • Van Der Marel, Erik & Shepherd, Ben, 2011. "Services trade, regulation, and regional integration: Evidence from sectoral data," MPRA Paper 34343, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:34343
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    References listed on IDEAS

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    1. repec:ebl:ecbull:eb-17-00999 is not listed on IDEAS
    2. 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.
    3. repec:bla:worlde:v:40:y:2017:i:6:p:1155-1183 is not listed on IDEAS
    4. Lionel Fontagné & Cristina Mitaritonna & José Signoret, 2016. "Estimated Tariff Equivalents of Services NTMs," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01476543, HAL.
    5. Egger, Peter & Shingal, Anirudh, 2014. "Determinants of services trade agreements," Papers 721, World Trade Institute.
    6. repec:bla:worlde:v:40:y:2017:i:3:p:532-543 is not listed on IDEAS
    7. Alessandro Barattieri & Ingo Borchert & Aaditya Mattoo, 2016. "Cross-border mergers and acquisitions in services: The role of policy and industrial structure," Canadian Journal of Economics, Canadian Economics Association, vol. 49(4), pages 1470-1501, November.
    8. 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.
    9. Bernard M. Hoekman & Petros C. Mavroidis, 2015. "A Technical Barriers to Trade Agreement for Services?," RSCAS Working Papers 2015/25, European University Institute.
    10. Bekkers, Eddy & Francois, Joseph & Tomberger, Patrick, 2016. "Tomorrow’s Silk Road: Assessing an EU-China Free Trade Agreement," Papers 974, World Trade Institute.
    11. World Bank, 2016. "Assessing the Impact of WTO Accession on Belarus," World Bank Other Operational Studies 24698, The World Bank.
    12. 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.
    13. repec:bla:worlde:v:40:y:2017:i:3:p:499-516 is not listed on IDEAS
    14. Peter H. Egger & Joseph Francois & Douglas R. Nelson, 2017. "The Role of Goods-Trade Networks for Services-Trade Volume," The World Economy, Wiley Blackwell, vol. 40(3), pages 532-543, March.
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    16. Bouvatier, Vincent, 2014. "Heterogeneous bank regulatory standards and the cross-border supply of financial services," Economic Modelling, Elsevier, vol. 40(C), pages 342-354.
    17. repec:hal:journl:dumas-00909960 is not listed on IDEAS
    18. Erik der Marel & Sébastien Miroudot, 2014. "The economics and political economy of going beyond the GATS," The Review of International Organizations, Springer, vol. 9(2), pages 205-239, June.
    19. Ebell, Monique & Hurst, Ian & Warren, James, 2016. "Modelling the long-run economic impact of leaving the European Union," Economic Modelling, Elsevier, vol. 59(C), pages 196-209.
    20. Bernard Hoekman & Ben Shepherd, 2017. "Services Productivity, Trade Policy and Manufacturing Exports," The World Economy, Wiley Blackwell, vol. 40(3), pages 499-516, March.
    21. Crozet, Matthieu & Milet, Emmanuel & Mirza, Daniel, 2016. "The impact of domestic regulations on international trade in services: Evidence from firm-level data," Journal of Comparative Economics, Elsevier, vol. 44(3), pages 585-607.

    More about this item

    Keywords

    Trade in services; Non-tariff measures; Regional integration;

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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