The Discriminatory Effect of Domestic Regulations on International Trade in Services: Evidence from Firm-Level Data

Matthieu Crozet, Emmanuel Milet and Daniel Mirza

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: In order to promote international trade in services, the WTO-GATS aims at progressively eliminating discriminatory regulations, which apply to foreign suppliers, byguaranteeing equal national treatment. This paper looks instead at the trade effect of domestic regulations, which apply to all firms indifferently and do not intend to exclude foreign suppliers. We propose a theory-based empirical test to determine whether or not these domestic regulations affect foreign suppliers more than local ones. We take this test to the data by using French firm-level exports of professional services to OECD countries. Our econometric results show that domestic regulations in the importing markets matter significantly for trade in services. They reduce both the decision to export and the individual exports. These results tend to prove that domestic regulations are de facto discriminatory even if they are not de jure.

Keywords: firm heterogeneity; Trade in services; domestic regulations; Commerce de services; régulations domestiques; firmes hétérogènes (search for similar items in EconPapers)
Date: 2013-02
New Economics Papers: this item is included in nep-cse and nep-int
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00801398v1
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Citations: View citations in EconPapers (17)

Published in 2013

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Related works:
Working Paper: The Discriminatory Effect of Domestic Regulations on International Trade in Services: Evidence from Firm-Level Data (2013)
Working Paper: The Discriminatory Effect of Domestic Regulations on International Trade in Services: Evidence from Firm-Level Data (2013)
Working Paper: The Discriminatory Effect of Domestic Regulations on International Trade in Services: Evidence from Firm-Level Data (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:halshs-00801398

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