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The influence of services trade liberalization on service flows and industry productivity in CIS countries and Russia

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  • Knobel Aleksandr

Abstract

This paper estimates the influence of the service sector’s liberalization on service flows in transition economies and on productivity of the Russian industry that uses these services as intermediate consumption. Empirical analysis of the international statistics shows that service trade between CIS countries and OECD countries is strongly underestimated and could grow 2.5–3 times larger due to liberalization. Modeling of the international service trade shows that services imports into Russia are strongly limited by existing trade barriers. For Russia, according to the estimates, the most liberalized service sector is communication services, and the least liberalized sector is information technology. This paper demonstrates that services are actively used by Russian industry as intermediate consumption. On the basis of the inter-industry empirical analysis, one can conclude that service sector liberalization may have a positive impact on the productivity of various sectors of the Russian manufacturing industry.

Suggested Citation

  • Knobel Aleksandr, 2012. "The influence of services trade liberalization on service flows and industry productivity in CIS countries and Russia," EERC Working Paper Series 12/05e, EERC Research Network, Russia and CIS.
    • Handle: RePEc:eer:wpalle:12/05e
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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