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Services Liberalisation, Export Similarity and Trade in Services

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  • Wenxi Lu

    (School of Economics, University of Adelaide)

Abstract

Studies show that service activities are essential for promoting manufacturing productivity and economic development. This raises an important question of how to promote services trade and whether policy liberalisation contributes to its development. The study examines the impact of policies on trade in services across countries using export data from UN Comtrade, where restrictions on trade as a result of policy are measured by the Services Trade Restrictiveness Index (STRI). The estimations are in the form of a log-linear gravity model analyzing the effect of STRI on bilateral services trade and one-sided service exports. Our results show that a one per cent increase in the overall STRI brings about a 0.25%–0.29% decrease in bilateral services trade and a 0.04% decrease in service exports. In addition, goods trade networks and export similarity show significant and positive impacts on services trade.

Suggested Citation

  • Wenxi Lu, 2018. "Services Liberalisation, Export Similarity and Trade in Services," School of Economics and Public Policy Working Papers 2018-04, University of Adelaide, School of Economics and Public Policy.
    • Handle: RePEc:adl:wpaper:2018-04
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    File URL: http://economics.adelaide.edu.au/research/papers/doc/wp2018-04.pdf
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    References listed on IDEAS

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    Cited by:

    1. Camille Reverdy, 2023. "Estimating the general equilibrium effects of services trade liberalization," Review of International Economics, Wiley Blackwell, vol. 31(2), pages 493-521, May.

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    More about this item

    Keywords

    trade in service; Services Trade Restriction Index; export similarity;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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