Services Trade Restrictiveness and Manufacturing Productivity: The Role of Institutions

Cosimo Beverelli (), Matteo Fiorini and Bernard Hoekman

No 2015/63, RSCAS Working Papers from European University Institute

Abstract: We study the effect of services trade restrictiveness on manufacturing productivity for a broad cross-section of countries at different stages of economic development. Decreasing services trade restrictiveness has a positive indirect impact on the manufacturing sectors that use services as intermediate inputs in production. We identify a critical role of local institutions in shaping this effect: countries with high institutional capacity benefit the most from services trade policy reforms in terms of increased productivity in downstream industries. We argue that this reflects the characteristics of many services and services trade and provide a theoretical framework to formalize our suggested mechanisms.

Keywords: services trade; institutions; productivity (search for similar items in EconPapers)
JEL-codes: F14 F15 F61 F63 (search for similar items in EconPapers)
Date: 2015-09
New Economics Papers: this item is included in nep-eff, nep-ger and nep-int
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Citations: View citations in EconPapers (13)

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Related works:
Journal Article: Services trade policy and manufacturing productivity: The role of institutions (2017)
Working Paper: Services Trade Policy and Manufacturing Productivity: The Role of Institutions (2016)
Working Paper: Services Trade Restrictiveness and Manufacturing Productivity: The Role of Institutions (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:rsc:rsceui:2015/63

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