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The Tradability of Services within Canada and the European Union

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  • Arjan Lejour
  • Jan-Willem de Paiva Verheijden

Abstract

This paper analyses bilateral trade flows between the provinces of Canada and between the member states of the European Union using a gravity model. On average, distance is less a hindrance for services trade than for goods trade. Language and regulation differences hamper intra-EU trade significantly. Services trade, in contrast to goods trade, is also hampered by the level of regulation in the importing country. Services trade within Canada as a share of GDP is twice the intra-EU level, and estimates suggest that intra-EU services trade could more than double if the internal market functioned like the Canadian services market.

Suggested Citation

  • Arjan Lejour & Jan-Willem de Paiva Verheijden, 2007. "The Tradability of Services within Canada and the European Union," The Service Industries Journal, Taylor & Francis Journals, vol. 27(4), pages 389-409, June.
    • Handle: RePEc:taf:servic:v:27:y:2007:i:4:p:389-409
    DOI: 10.1080/02642060701346706
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    Cited by:

    1. Gervais, Antoine & Jensen, J. Bradford, 2019. "The tradability of services: Geographic concentration and trade costs," Journal of International Economics, Elsevier, vol. 118(C), pages 331-350.
    2. Barry Eichengreen & Poonam Gupta, 2013. "Exports of services: Indian experience in perspective," Indian Growth and Development Review, Emerald Group Publishing Limited, vol. 6(1), pages 35-60, April.
    3. Apokin, Alexander (Апокин, Александр) & Gnidchenko, Andrey (Гнидченко, Андрей) & Sabelnikova, Ekaterina (Сабельникова, Екатерина), 2017. "Import Substitution Potential and Gains from Economic Integration: Disaggregated Estimations [Потенциал Импортозамещения И Выгоды От Экономической Интеграции: Дезагрегированные Оценки]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 2, pages 44-71, April.
    4. Gnangnon, Sèna Kimm & Iyer, Harish, 2018. "Does bridging the Internet Access Divide contribute to enhancing countries' integration into the global trade in services markets?," Telecommunications Policy, Elsevier, vol. 42(1), pages 61-77.
    5. Martijn J. Burger & Mark J. P. M. Thissen & Frank G. van Oort & Dario Diodato, 2014. "The Magnitude and Distance Decay of Trade in Goods and Services: New Evidence for European Countries," Spatial Economic Analysis, Taylor & Francis Journals, vol. 9(3), pages 231-259, September.
    6. Nico van Leeuwen & Arjan Lejour, 2006. "Bilateral Services Trade Data and the GTAP database," CPB Memorandum 160, CPB Netherlands Bureau for Economic Policy Analysis.

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