The Impact of Mode 4 Liberalization on Bilateral Trade Flows

Marion Jansen and Roberta Piermartini

No 5382, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper gives insights into the possible trade creating effects of service trade liberalization via Mode 4. In particular we expect that temporary movements of persons, like permanent movements, have the potential to reduce transaction costs for merchandise trade between home and host country. Exploiting data on H-1B beneficiaries from different origins in the United States and using a gravity model of trade, we find significantly positive effects of temporary movements of persons on bilateral merchandise trade. In addition to this, the paper provides insights into the determinants of temporary movements of persons.

Keywords: Mode 4; Bilateral trade flows; Services liberalization; Wto (search for similar items in EconPapers)
JEL-codes: C30 F13 F15 F29 (search for similar items in EconPapers)
Date: 2005-11
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (19)

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Related works:
Working Paper: The Impact of Mode 4 Liberalization on Bilateral Trade Flows (2005)
Working Paper: The impact of Mode 4 liberalization on bilateral trade flows (2005)
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