The Impact of Services Trade Restrictiveness on Trade Flows: First Estimates

Hildegunn Nordås and Dorothée Rouzet

No 178, OECD Trade Policy Papers from OECD Publishing

Abstract: This paper uses newly released OECD data on services trade restrictions (STRI) to analyse the relationship between services trade restrictions, cross-border trade in services and trade in downstream manufactured goods. A standard gravity model is enhanced by the STRI indices in a cross-section regression analysis. Services trade restrictions are negatively associated with both imports and exports of services. The surprisingly strong effect on services exports is probably explained by a negative relationship between the STRIs and sector performance indices. Consequently, services suppliers are less competitive abroad. A negative relationship is also found between the STRI indices and exports, imports and intra-industry trade in manufactured goods. The statistical significance and the elasticities vary across services and goods sectors in ways that intuitively make sense.

Keywords: regulatory spillovers; services trade restrictions; trade in services (search for similar items in EconPapers)
JEL-codes: F13 F14 F68 (search for similar items in EconPapers)
Date: 2015-02-06
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:oec:traaab:178-en

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