The Tradability of Services within Canada and the European Union

Arjan Lejour and Jan-Willem de Paiva Verheijden

The Service Industries Journal, 2007, vol. 27, issue 4, 389-409

Abstract: This paper analyses bilateral trade flows between the provinces of Canada and between the member states of the European Union using a gravity model. On average, distance is less a hindrance for services trade than for goods trade. Language and regulation differences hamper intra-EU trade significantly. Services trade, in contrast to goods trade, is also hampered by the level of regulation in the importing country. Services trade within Canada as a share of GDP is twice the intra-EU level, and estimates suggest that intra-EU services trade could more than double if the internal market functioned like the Canadian services market.

Date: 2007
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DOI: 10.1080/02642060701346706

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The Service Industries Journal is currently edited by Eileen Bridges, Professor Domingo Ribeiro, Ronald Goldsmith, Barry Howcroft and Youjae Yi

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