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Assessment of tariff equivalents for services considering the zero flows

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  • GUILLIN, AMÉLIE

Abstract

Measuring trade barriers in services is complex due to all the non-tariff barriers that exist. In this paper we rely on quantity measures using gravity equation. In order to take into consideration the presence of zero flows in the database, we use a sample selection model. Then, we use the results of both stages of the model to derive tariff equivalents based on the distribution of the estimated residuals. Applying this methodology to the Eurostat database, we obtain tariff equivalents for a large number of countries and for 11 services sectors. Our main conclusions are that protection is not homogeneous among sectors for a country and that services openness is not directly linked with the level of development. Our results are robust to changes in specification, but we do find that OLS estimations overestimate the commercial openness of the countries with many zero flows.

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  • Guillin, Amélie, 2013. "Assessment of tariff equivalents for services considering the zero flows," World Trade Review, Cambridge University Press, vol. 12(3), pages 549-575, July.
    • Handle: RePEc:cup:wotrrv:v:12:y:2013:i:03:p:549-575_00
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    1. repec:spo:wpmain:info:hdl:2441/27s0rlpcib9hhphbgsgctgbcj5 is not listed on IDEAS
    2. Hildegunn K. Nordås & Dorothée Rouzet, 2017. "The Impact of Services Trade Restrictiveness on Trade Flows," The World Economy, Wiley Blackwell, vol. 40(6), pages 1155-1183, June.
    3. Bouvatier, Vincent & Delatte, Anne-Laure, 2015. "Waves of international banking integration: A tale of regional differences," European Economic Review, Elsevier, vol. 80(C), pages 354-373.
    4. Zongo, Amara, 2020. "The Impact of Services Trade Restrictiveness on Food Trade," MPRA Paper 101658, University Library of Munich, Germany.
    5. Crozet, Matthieu & Milet, Emmanuel & Mirza, Daniel, 2016. "The impact of domestic regulations on international trade in services: Evidence from firm-level data," Journal of Comparative Economics, Elsevier, vol. 44(3), pages 585-607.
    6. Bouvatier, Vincent, 2014. "Heterogeneous bank regulatory standards and the cross-border supply of financial services," Economic Modelling, Elsevier, vol. 40(C), pages 342-354.
    7. repec:hal:spmain:info:hdl:2441/27s0rlpcib9hhphbgsgctgbcj5 is not listed on IDEAS
    8. Faizi, Bushra & Shah, Mohamed Eskandar, 2022. "Estimating Protection in Services Sector: A PPML Analysis," Conference papers 333430, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    9. Su, Xiaoyan & Anwar, Sajid & Zhou, Ying & Tang, Xuan, 2020. "Services trade restrictiveness and manufacturing export sophistication," The North American Journal of Economics and Finance, Elsevier, vol. 51(C).
    10. Julien Gooris & Cristina Mitaritonna, 2015. "Which import restrictions matter for trade in services ?," Working Papers 2015-33, CEPII research center.

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