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The Effect of Border Barriers to Services Trade on Goods Trade

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  • Dincer, Nergiz
  • Tekin-Koru, Ayca

Abstract

This paper has two objectives: (i) to introduce border policy-induced barriers (PIBs) to services trade and (ii) analyze the impact of border PIBs in services sectors on goods trade. The World Input-Output Database covering 43 countries is used over the period 2000-2014. A three-stage analysis is employed. The measures of bilateral services trade barriers calculated in each services sector in the first stage are decomposed into its cultural/geographical and policy-induced parts in the second stage. Border PIBs to services trade are used in the structural gravity estimations of bilateral goods trade in the final stage. The results demonstrate significant and robust adverse effects of barriers to services trade on goods trade. When the level of development is taken into consideration, there are marked differences in the impact of these barriers on goods trade.

Suggested Citation

  • Dincer, Nergiz & Tekin-Koru, Ayca, 2019. "The Effect of Border Barriers to Services Trade on Goods Trade," MPRA Paper 96119, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:96119
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    More about this item

    Keywords

    border services trade barriers; goods exporting; gravity;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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