Economics at your fingertips  

Services Policies and Manufacturing Exports

Ben Shepherd

Working Papers from eSocialSciences

Abstract: This paper uses a structural gravity model to show the effects of services policies on manufacturing exports. Whereas the previous literature has focused on indirect effects of policies—flowing through productivity effects in domestic services markets—the paper looks at direct effects, namely the ability of domestic manufacturers to access services inputs on world markets at competitive prices. The results show that discriminatory barriers to services trade have a significant negative effect on manufacturing exports. It uses theory-consistent counterfactual simulations to show that the trade and real output effects of a 10% reduction in services trade restrictiveness are in fact much larger than those of a 10% reduction in tariffs. On a policy level, the results suggest that an additional argument for liberalizing services markets is that it in fact aids manufacturing sector development, due to the intimate links between the two.

Keywords: eSS; services; manufacturing; gravity model; services policies; productivity; domestic services markets; competitive prices; theory-consistent counterfactual simulations; trade; tariffs; liberalizing services markets; manufacturing sector. (search for similar items in EconPapers)
Date: 2018-12
Note: Institutional Papers
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) ... AId=12958&fref=repec

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in Working Papers from eSocialSciences
Bibliographic data for series maintained by Padma Prakash ().

Page updated 2019-04-22
Handle: RePEc:ess:wpaper:id:12958