IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/11441.html
   My bibliography  Save this paper

The Internal Market for Services of the European Union - Evidence from the OECD-Panel Data

Author

Listed:
  • Weber, Lars
  • Asmus, Juergen

Abstract

The European Union service sector hampers many regulations by the Member States. For this reason, the European Commission issued a directive to reduce regulations and raise competition. We update the study from Kox, Lejourr and Montizaan (2005) with the latest changes of the directive on services o the internal market. Based on OECD-Panel data, we are able to develop a linear service trade model to investigate the economic benefit of such a directive. Our results show that the volume of service trade would decline with a between 2.6%-5.4%. This surprising outcome is contrary to previous results from Kox, Lejour and Montizaan (2005) or Breuss and Badinger (2005). We show that this is due to the latest modification in the service directive.

Suggested Citation

  • Weber, Lars & Asmus, Juergen, 2008. "The Internal Market for Services of the European Union - Evidence from the OECD-Panel Data," MPRA Paper 11441, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:11441
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/11441/1/MPRA_paper_11441.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mayer, Thierry & Zignago, Soledad, 2006. "Notes on CEPII’s distances measures," MPRA Paper 26469, University Library of Munich, Germany.
    2. Henk Kox & Arjan Lejour & Raymond Montizaan, 2004. "The free movement of services within the EU," CPB Document 69.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    3. Paul Conway & Véronique Janod & Giuseppe Nicoletti, 2005. "Product Market Regulation in OECD Countries: 1998 to 2003," OECD Economics Department Working Papers 419, OECD Publishing.
    4. Line Vogt, 2005. "The EU's Single Market: At Your Service?," OECD Economics Department Working Papers 449, OECD Publishing.
    5. von Hippel, Eric & Tyre, Marcie J., 1995. "How learning by doing is done: problem identification in novel process equipment," Research Policy, Elsevier, vol. 24(1), pages 1-12, January.
    6. Henk Kox & Arjan Lejour & Raymond Montizaan, 2004. "The free movement of services within the EU," CPB Document 69, CPB Netherlands Bureau for Economic Policy Analysis.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arbia, Giuseppe & Battisti, Michele & Di Vaio, Gianfranco, 2010. "Institutions and geography: Empirical test of spatial growth models for European regions," Economic Modelling, Elsevier, vol. 27(1), pages 12-21, January.
    2. Yvonne Wolfmayr & Michael Pfaffermayr, 2022. "The EU Services Directive: Untapped Potentials of Trade in Services," WIFO Studies, WIFO, number 69628, February.
    3. Henk Kox & Arjan Lejour, 2005. "Liberalisation of the European services market and its impact on Switzerland," CPB Memorandum 130.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    4. Henk Kox & Arjan Lejour, 2006. "The Effects of the Services Directive on Intra-eu Trade and fdi," Revue économique, Presses de Sciences-Po, vol. 57(4), pages 747-769.
    5. Nora Dihel & Felix Eschenbach & Ben Shepherd, 2006. "South-South Services Trade," OECD Trade Policy Papers 39, OECD Publishing.
    6. Thomas Kiessl & Carsten Pohl & Heinz Schmalholz, 2006. "Ostdeutsche Unternehmen betrachten EU-Dienstleistungsrichtlinie mit Skepsis," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 13(01), pages .15-26, February.
    7. Arjan Lejour & J.W. de Paiva Verheijden, 2004. "Services trade within Canada and the European Union; what do they have in common?," CPB Discussion Paper 42.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    8. Harald Badinger & Niklas Maydell, 2009. "Legal and Economic Issues in Completing the EU Internal Market for Services: An Interdisciplinary Perspective," Journal of Common Market Studies, Wiley Blackwell, vol. 47(4), pages 693-717, September.
    9. Arjan Lejour & Paul Veenendaal & Gerard Verweij & Nico van Leeuwen, 2006. "Worldscan; a model for international economic policy analysis," CPB Document 111.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    10. Milena Kern & Jörg Paetzold & Hannes Winner, 2021. "Cutting red tape for trade in services," The World Economy, Wiley Blackwell, vol. 44(10), pages 2858-2886, October.
    11. Bianka Dettmer, 2012. "The European Union's service directive: Contrasting ex ante estimates with empirical evidence," Jena Economics Research Papers 2012-019, Friedrich-Schiller-University Jena.
    12. Fahed WAHDANI & Mohammad ALFAOURI, 2020. ".eu TOP LEVEL DOMAIN NAME & FREE MOVEMENT OF SERVICES: THE EU POLICY OVER SINGLE DIGITAL MARKET," CrossCultural Management Journal, Fundația Română pentru Inteligența Afacerii, Editorial Department, issue 1, pages 53-66, July.
    13. repec:hal:journl:dumas-00909960 is not listed on IDEAS
    14. Laura Thissen & Sjef Ederveen, 2006. "Higher education; time for coordination on a European level?," CPB Discussion Paper 68, CPB Netherlands Bureau for Economic Policy Analysis.
    15. Henk Kox & Hildegunn Kyvik Nordås, 2007. "Services Trade and Domestic Regulation," OECD Trade Policy Papers 49, OECD Publishing.
    16. Laura Thissen & Sjef Ederveen, 2006. "Higher education; time for coordination on a European level?," CPB Discussion Paper 68.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    17. Arjan Lejour & Henk Kox & Roland de Bruijn, 2006. "The trade-induced effects of the Services Directive and the country of origin principle," CPB Document 108, CPB Netherlands Bureau for Economic Policy Analysis.
    18. Bajo-Rubio, Oscar & Gomez-Plana, Antonio G., 2005. "Simulating the effects of the European Single Market: A CGE analysis for Spain," Journal of Policy Modeling, Elsevier, vol. 27(6), pages 689-709, September.
    19. Michele Cincera, 2005. "L'importance et l'étendue des barrières légales et administratives dans le cadre de la directive "Bolkenstein": une étude comparative entre la Belgique et ses principaux partenaires commerci," DULBEA Working Papers 05-11.RR, ULB -- Universite Libre de Bruxelles.
    20. Henk Kox & Arjan Lejour, 2005. "Regulatory heterogeneity as obstacle for international services trade," CPB Discussion Paper 49, CPB Netherlands Bureau for Economic Policy Analysis.
    21. Kox, Henk L.M. & Leeuwen, George van, 2011. "Measuring dynamic market selection by persistent scale inefficiencies - new methodology applied to EU business services," MPRA Paper 34986, University Library of Munich, Germany.

    More about this item

    Keywords

    Regulatory Barriers; OECD Panel Data; Service Trade; European Union;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:11441. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.