The Role of Goods-Trade Networks for Services-Trade Volume

Peter Egger and Joseph Francois

Papers from World Trade Institute

Abstract: Abstract In this paper, we address the role of countries’ goods-trade networks for their services-trade volume. The paper employs a large cross section of bilateral trade data on aggregate cross-border goods and services sales and illustrates that the depth and overlap of two countries’ services networks induce a positive direct impact on their services-trade volume. The evidence takes into account that goods trade flows and networks are potentially endogenous so that the estimated direct effects support a causal interpretation. We find that the magnitude of the multilateral goods-trade network effect on the bilateral services-trade volume is much larger than that of bilateral goods-trade volume.

Date: 2015-11-08
New Economics Papers: this item is included in nep-int and nep-net
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Citations: View citations in EconPapers (7)

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Related works:
Journal Article: The Role of Goods-Trade Networks for Services-Trade Volume (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:wti:papers:884

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