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Trade costs and productivity in services sectors

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  • Miroudot, Sébastien
  • Sauvage, Jehan
  • Shepherd, Ben

Abstract

This paper provides the first evidence linking lower international trade costs with higher productivity in services sectors. On average, lowering trade costs by 10% is associated with a gain in total factor productivity of around 0.5%, which is an effect of similar magnitude to that for goods sectors.

Suggested Citation

  • Miroudot, Sébastien & Sauvage, Jehan & Shepherd, Ben, 2012. "Trade costs and productivity in services sectors," Economics Letters, Elsevier, vol. 114(1), pages 36-38.
    • Handle: RePEc:eee:ecolet:v:114:y:2012:i:1:p:36-38
    DOI: 10.1016/j.econlet.2011.09.005
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    References listed on IDEAS

    as
    1. Thomas Chaney, 2008. "Distorted Gravity: The Intensive and Extensive Margins of International Trade," American Economic Review, American Economic Association, vol. 98(4), pages 1707-1721, September.
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    More about this item

    Keywords

    Trade policy; Trade in services; Productivity;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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