Complementarity of Inputs across Countries in Services Trade

Carolina Lennon, Daniel Mirza and Giuseppe Nicoletti ()
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Carolina Lennon: PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, UP1 - Université Paris 1 Panthéon-Sorbonne
Giuseppe Nicoletti: OCDE - Organisation de Coopération et de Développement Economiques = Organisation for Economic Co-operation and Development

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Abstract: This article argues that trade in certain services has a specific feature that does not necessarily apply to goods. In those services, the production process ends in the country where thez are eventually consumed (i.e. in the importing country). Hence, we propose that services trade must use interactively inputs from both exporting and importing countries and thus, should be affected in the same manner by their respective costs. We test our analytical framework using a macro dataset on bilateral trade in services and a specific industry dataset on Air passenger non-policy factors affecting the use of inputs in both the exporting and the importing country have a symmetric impact on the bilateral flow of services between those countries.

Date: 2009-06
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Published in Annales d'Economie et de Statistique, 2009, 93-94, pp.183-205. ⟨10.2307/27917388⟩

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Related works:
Journal Article: Complementarity of Inputs across Countries in Services Trade (2009)
Working Paper: Complementarity of Inputs across Countries in Services Trade (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:pseptp:hal-00813417

DOI: 10.2307/27917388

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