From Selling Goods to Selling Services: Firm Responses to Trade Liberalization
Anson Soderbery () and
Greg Wright ()
CEP Discussion Papers from Centre for Economic Performance, LSE
In the face of trade liberalization domestic firms are often forced out of the market, whereas others adapt and survive. In this paper we focus on a new channel of adaptation, namely the shift toward increased provision of services in lieu of goods production. We exploit variation in EU trade policy to show that lower manufacturing tariffs cause firms to shift into services provision and out of goods production. Additionally, we find that a successful transition is strongly associated with higher firm-level R&D stocks whereas higher physical capital stocks slow the shift into services provision.
Keywords: Services trade; trade liberalization (search for similar items in EconPapers)
JEL-codes: F12 F15 F23 (search for similar items in EconPapers)
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Journal Article: From Selling Goods to Selling Services: Firm Responses to Trade Liberalization (2018)
Working Paper: From Selling Goods to Selling Services: Firm Responses to Trade Liberalization (2016)
Working Paper: From Selling Goods to Selling Services: Firm Responses to Trade Liberalization (2014)
Working Paper: From selling goods to selling services: firm responses to trade liberalization (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp1303
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