Reassessing Services Trade Barriers: Evidence from Turkish Microdata and the STRI Framework

Ömer Tarık Gençosmanoğlu
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Ömer Tarık Gençosmanoğlu: Ankara University; Ministry of Trade

East Asian Economic Review, 2025, vol. 29, issue 2, 139-199

Abstract: This study examines two key challenges in services trade research: the reliability of trade data and the measurement of non-tariff barriers, particularly the Services Trade Restrictiveness Index (STRI). Using firm-level panel data from Türkiye with fixed effects, we show that international data limitations significantly affect empirical results and that the explanatory power of the gravity model declines with more detailed microdata. We also find that the STRI’s link to trade flows is weaker and more sector-specific than assumed, questioning its methodological adequacy. Additionally, ad valorem equivalent (AVE) rates are estimated, revealing moderate barriers for Türkiye’s exports but much higher protection in imports, notably in technical services and transport. The findings highlight the need for sector-specific liberalization and call for next-generation STRI indices that are dynamic, firm-responsive, and modular by regulatory dimension. We advocate for cautious interpretation of STRI-based estimates and encourage the use of microdata across countries to improve services trade analysis and policy design.

Keywords: Trade in Services; Gravity Model; the Services Trade Restrictiveness Index (STRI); Non-Tariff Barrie (search for similar items in EconPapers)
JEL-codes: C23 F13 F14 (search for similar items in EconPapers)
Date: 2025
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https://dx.doi.org/10.11644/KIEP.EAER.2025.29.2.447 Full text

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