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Policy restrictions and services performance: Evidence from 32 countries

Author

Listed:
  • Xiaobo He

    (Global Food Studies, University of Adelaide, Adelaide SA 5005, Australia)

  • Christopher Findlay

    (Faculty of the Professions, University of Adelaide, Adelaide SA 5005, Australia)

Abstract

The impact of services trade and investment policy which affects the performance of the service sector is the topic of this paper. The performance indicator is not the services share of total output but the services shares in the gross value of goods exports. We find that a more restrictive environment for services delivery is associated with a lower services share in exports, but with a diminishing effect. The results remain robust even after extra measures of the ease of doing business (such as number of documents to export, number of days to export and "rank of trading across borders") are included. There is a significant relationship between policy and the share of services from domestic origin, including those from foreign invested firms, in exports, but not with the share of services from offshore sources. This result indicates that at present the more important impact of services policy reforms is via the establishment of new providers, rather than via trade across borders. This causal channel has important consequences for the political economy of reforms in services.

Suggested Citation

  • Xiaobo He & Christopher Findlay, 2014. "Policy restrictions and services performance: Evidence from 32 countries," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(01), pages 1-19.
    • Handle: RePEc:wsi:jicepx:v:05:y:2014:i:01:n:s1793993314400031
    DOI: 10.1142/S1793993314400031
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    References listed on IDEAS

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    1. Jens Matthias Arnold & Beata Javorcik & Molly Lipscomb & Aaditya Mattoo, 2016. "Services Reform and Manufacturing Performance: Evidence from India," Economic Journal, Royal Economic Society, vol. 126(590), pages 1-39, February.
    2. Andrew K. Rose, 2007. "The Foreign Service and Foreign Trade: Embassies as Export Promotion," The World Economy, Wiley Blackwell, vol. 30(1), pages 22-38, January.
    3. Anirudh Shingal, 2014. "Services globalization and sub-national demand linkages: The case of India," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(01), pages 1-23.
    4. Borchert, Ingo & Gootiiz, Batshur & Mattoo, Aaditya, 2012. "Guide to the services trade restrictions database," Policy Research Working Paper Series 6108, The World Bank.
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    Cited by:

    1. Xiying Zhang & Yihuan Wang, 2022. "Research on the Influence of Digital Technology and Policy Restrictions on the Development of Digital Service Trade," Sustainability, MDPI, vol. 14(16), pages 1-16, August.

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    More about this item

    Keywords

    Services trade restrictiveness index (STRI); trade in valueadded (TiVA); OECD; developing countries; F13; F14; F60;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F60 - International Economics - - Economic Impacts of Globalization - - - General

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