Services Trade Restrictiveness and Manufacturing Productivity: The Role of Institutions

Matteo Fiorini and Cosimo Beverelli ()
Authors registered in the RePEc Author Service: Bernard Hoekman

No 10834, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We study the effect of services trade restrictiveness on manufacturing productivity for a broad cross-section of countries at different stages of economic development. Decreasing services trade restrictiveness has a positive indirect impact on the manufacturing sectors that use services as intermediate inputs in production. We identify a critical role of local institutions in shaping this effect: countries with high institutional capacity benefit the most from services trade policy reforms in terms of increased productivity in downstream industries. We argue that this reflects the characteristics of many services and services trade and provide a theoretical framework to formalize our suggested mechanisms.

Keywords: Institutions; Productivity; Services; Trade policy (search for similar items in EconPapers)
JEL-codes: F14 F15 F61 F63 (search for similar items in EconPapers)
Date: 2015-09
New Economics Papers: this item is included in nep-eff and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

Downloads: (external link)
https://cepr.org/publications/DP10834 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: Services trade policy and manufacturing productivity: The role of institutions (2017)
Working Paper: Services Trade Policy and Manufacturing Productivity: The Role of Institutions (2016)
Working Paper: Services Trade Restrictiveness and Manufacturing Productivity: The Role of Institutions (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:10834

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP10834

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().