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The Role of Goods-Trade Networks for Services-Trade Volume

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  • Egger, Peter
  • Francois, Joseph

Abstract

Abstract In this paper, we address the role of countries’ goods-trade networks for their services-trade volume. The paper employs a large cross section of bilateral trade data on aggregate cross-border goods and services sales and illustrates that the depth and overlap of two countries’ services networks induce a positive direct impact on their services-trade volume. The evidence takes into account that goods trade flows and networks are potentially endogenous so that the estimated direct effects support a causal interpretation. We find that the magnitude of the multilateral goods-trade network effect on the bilateral services-trade volume is much larger than that of bilateral goods-trade volume.

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  • Egger, Peter & Francois, Joseph, 2015. "The Role of Goods-Trade Networks for Services-Trade Volume," Papers 884, World Trade Institute.
  • Handle: RePEc:wti:papers:884
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    Cited by:

    1. Rui Mano, 2016. "Quantifying the Spillovers from China Rebalancing Using a Multi-Sector Ricardian Trade Model," IMF Working Papers 16/219, International Monetary Fund.
    2. Joseph Francois & Miriam Manchin & Patrick Tomberger, 2015. "Services Linkages and the Value Added Content of Trade," The World Economy, Wiley Blackwell, vol. 38(11), pages 1631-1649, November.
    3. Wenxi Lu, 2018. "Services Liberalisation, Export Similarity and Trade in Services," School of Economics Working Papers 2018-04, University of Adelaide, School of Economics.
    4. Elisabeth Christen & Joseph Francois, 2017. "Modes of Supply for US Exports of Services," The World Economy, Wiley Blackwell, vol. 40(3), pages 517-531, March.
    5. Woori Lee, 2017. "Services liberalization and GVC participation: New evidence for heterogeneous effects by income level and provisions," CTEI Working Papers series 08-2017, Centre for Trade and Economic Integration, The Graduate Institute.

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