How Do Restrictions to Trade in Services Affect Productivity?

Yehuda Porath and Stéphane Sorbe

No 333035, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: In the context of the global productivity slowdown and increasing trade tensions, we assess the effect of restrictions to trade in services on productivity in OECD countries. Services can be important inputs to the production of other industries (both manufacturing and other services). Restrictions to trade in services may reduce the availability of cheap and high-quality service inputs and thereby hinder productivity in downstream industries. To test for this, we match industry-level data on productivity to the OECD’s STRI (Services Trade Restrictiveness Index) which we use as an indicator of trade restrictions. To this end, we rely on detailed input-output tables (using the US economy as a benchmark) to derive the exposure of each downstream industry to different service inputs.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:333035

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