The Incidence of Geography on Canada's Services Trade

James Anderson, Catherine A. Milot and Yoto Yotov

No 17630, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We estimate geographic barriers to export trade in nine service categories for Canada's provinces from 1997 to 2007 using the structural gravity model. Constructed Home, Domestic and Foreign Bias indexes (the last two new) capture the direct plus indirect effect of services trade costs on intra-provincial, inter-provincial and international trade relative to their frictionless benchmarks. Barriers to services international trade are huge relative to inter-provincial trade and large relative to goods international trade. A novel test confirms the fit of structural gravity with services trade data.

JEL-codes: F1 (search for similar items in EconPapers)
Date: 2011-12
New Economics Papers: this item is included in nep-int
Note: ITI
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Citations: View citations in EconPapers (12)

Published as HOW MUCH DOES GEOGRAPHY DEFLECT SERVICES TRADE? CANADIAN ANSWERS James E. Anderson1,*, Catherine A. Milot2 andYoto V. Yotov3,† International Economic Review Volume 55, Issue 3, pages 791–818, August 2014

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