IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/2019-269.html
   My bibliography  Save this paper

Deepening the EU’s Single Market for Services

Author

Listed:
  • Mr. Christian H Ebeke
  • Jan-Martin Frie
  • Louise Rabier

Abstract

The services sector is increasingly important for the euro area economy, but productivity growth in the sector has stalled over the past two decades. Remaining barriers to cross-border trade in services within the EU Single Market contribute to this weak performance. Our empirical analysis suggests that slow progress in tackling these barriers is associated with political economy factors such as weak government support in parliaments, low government efficiency and high markups. To remove the cross-border restrictions on services trade, we suggest combining incentives such as financial support, technical assistance and improved communication on barriers with more effective enforcement.

Suggested Citation

  • Mr. Christian H Ebeke & Jan-Martin Frie & Louise Rabier, 2019. "Deepening the EU’s Single Market for Services," IMF Working Papers 2019/269, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2019/269
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=48823
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Luis Garicano & Claire Lelarge & John Van Reenen, 2016. "Firm Size Distortions and the Productivity Distribution: Evidence from France," American Economic Review, American Economic Association, vol. 106(11), pages 3439-3479, November.
    2. Olivier Blanchard & Francesco Giavazzi, 2003. "Macroeconomic Effects of Regulation and Deregulation in Goods and Labor Markets," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(3), pages 879-907.
    3. Ruben V Atoyan & Lone Engbo Christiansen & Allan Dizioli & Christian H Ebeke & Nadeem Ilahi & Anna Ilyina & Gil Mehrez & Haonan Qu & Faezeh Raei & Alaina P Rhee & Daria V Zakharova, 2016. "Emigration and Its Economic Impact on Eastern Europe," IMF Staff Discussion Notes 16/7, International Monetary Fund.
    4. Renaud Bourlès & Gilbert Cette & Jimmy Lopez & Jacques Mairesse & Giuseppe Nicoletti, 2013. "Do Product Market Regulations In Upstream Sectors Curb Productivity Growth? Panel Data Evidence For OECD Countries," The Review of Economics and Statistics, MIT Press, vol. 95(5), pages 1750-1768, December.
    5. Criscuolo, Chiara & Gal, Peter N. & Menon, Carlo, 2014. "The dynamics of employment growth: new evidence from 18 countries," LSE Research Online Documents on Economics 60286, London School of Economics and Political Science, LSE Library.
    6. repec:oec:stiaaa:2016/2-en is not listed on IDEAS
    7. Luca Marcolin & Sébastien Miroudot & Mariagrazia Squicciarini, 2016. "GVCs, Jobs And Routine Content Of Occupations," OECD Trade Policy Papers 187, OECD Publishing.
    8. Gilbert Cette & Christian Clerc & Lea Bresson, 2015. "Contribution of ICT Diffusion to Labour Productivity Growth: The United States, Canada, the Eurozone, and the United Kingdom, 1970-2013," International Productivity Monitor, Centre for the Study of Living Standards, vol. 28, pages 81-88, Spring.
    9. Orsetta Causa & Mikkel Hermansen & Nicolas Ruiz, 2016. "The Distributional Impact of Structural Reforms," OECD Economics Department Working Papers 1342, OECD Publishing.
    10. Vincent Aussilloux & Charlotte Emlinger & Lionel Fontagné, 2011. "What Benefits from Completing the Single Market," La Lettre du CEPII, CEPII research center, issue 316.
    11. Mr. Ruben V Atoyan & Lone Engbo Christiansen & Allan Dizioli & Mr. Christian H Ebeke & Mr. Nadeem Ilahi & Ms. Anna Ilyina & Mr. Gil Mehrez & Mr. Haonan Qu & Ms. Faezeh Raei & Ms. Alaina P Rhee & Ms. D, 2016. "Emigration and Its Economic Impact on Eastern Europe," IMF Staff Discussion Notes 2016/007, International Monetary Fund.
    12. Luca Marcolin & Sébastien Miroudot & Mariagrazia Squicciarini, 2016. "The Routine Content Of Occupations: New Cross-Country Measures Based On PIAAC," OECD Trade Policy Papers 188, OECD Publishing.
    13. Anna Thum-Thysen & Erik Canton, 2015. "Estimation of service sector mark-ups determined by structural reform indicators," European Economy - Economic Papers 2008 - 2015 547, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    14. Da Silva, António Dias & Givone, Audrey & Sondermann, David, 2017. "When do countries implement structural reforms?," Working Paper Series 2078, European Central Bank.
    15. Emilio Fernández Corugedo & Mrs. Esther Perez Ruiz, 2014. "The EU Services Directive: Gains from Further Liberalization," IMF Working Papers 2014/113, International Monetary Fund.
    16. Josefa Monteagudo & Aleksander Rutkowski & Dimitri Lorenzani, 2012. "The economic impact of the Services Directive: A first assessment following implementation," European Economy - Economic Papers 2008 - 2015 456, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    17. Jens Høj & Vincenzo Galasso & Giuseppe Nicoletti & Thai-Thanh Dang, 2006. "The Political Economy of Structural Reform: Empirical Evidence from OECD Countries," OECD Economics Department Working Papers 501, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Masuch, Klaus & Anderton, Robert & Setzer, Ralph & Benalal, Nicholai, 2018. "Structural policies in the euro area," Occasional Paper Series 210, European Central Bank.
    2. Peter Gal & Alexander Hijzen, 2016. "The short-term impact of product market reforms: A cross-country firm-level analysis," OECD Economics Department Working Papers 1311, OECD Publishing.
    3. Cette, Gilbert & Fernald, John & Mojon, Benoît, 2016. "The pre-Great Recession slowdown in productivity," European Economic Review, Elsevier, vol. 88(C), pages 3-20.
    4. Nicoletti, Giuseppe & von Rueden, Christina & Andrews, Dan, 2020. "Digital technology diffusion: A matter of capabilities, incentives or both?," European Economic Review, Elsevier, vol. 128(C).
    5. Andre Jungmittag, 2018. "The Direct and Indirect Effects of Product Market Regulations in the Retail Trade Sector," JRC Research Reports JRC112222, Joint Research Centre.
    6. Chantal Kegels & Dirk Verwerft, 2018. "Working Paper 09-18 - Economic impact of professional services reform in Belgium - A DSGE simulation," Working Papers 1809, Federal Planning Bureau, Belgium.
    7. Roeger, Werner & Varga, Janos & Veld, Jan in 't & Vogel, Lukas, 2021. "The distributional impact of labour market reforms: A model-based assessment," European Economic Review, Elsevier, vol. 131(C).
    8. Nauro F. Campos & Paul De Grauwe & Yuemei Ji, 2017. "Structural Reforms, Growth and Inequality: An Overview of Theory, Measurement and Evidence," CESifo Working Paper Series 6812, CESifo.
    9. International Monetary Fund, 2015. "Central and Eastern Europe: New Member States (NMS) Policy Forum, 2014, Selected Issues Paper," IMF Staff Country Reports 2015/098, International Monetary Fund.
    10. Cristina Fernández & Roberta García & Paloma Lopez-Garcia & Benedicta Marzinotto & Roberta Serafini & Juuso Vanhala & Ladislav Wintr, 2017. "Firm growth in Europe: An overview based on the COMPNET labour module," BCL working papers 107, Central Bank of Luxembourg.
    11. Mihaela Simionescu & Yuriy Bilan & Grzegorz Mentel, 2017. "Economic Effects of Migration from Poland to the UK," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 19(46), pages 757-757, August.
    12. Ana Gouveia & Sílvia Santos & Inês Gonçalves, 2017. "The short-term impact of structural reforms on productivity growth: beyond direct effects," GEE Papers 0065, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Feb 2017.
    13. Cockx, Bart & Desiere, Sam, 2024. "Labour costs and the decision to hire the first employee," European Economic Review, Elsevier, vol. 170(C).
    14. Laura Alfaro & Anusha Chari, 2014. "Deregulation, Misallocation, and Size: Evidence from India," Journal of Law and Economics, University of Chicago Press, vol. 57(4), pages 897-936.
    15. Anderton, Robert & Di Lupidio, Benedetta & Jarmulska, Barbara, 2020. "The impact of product market regulation on productivity through firm churning: Evidence from European countries," Economic Modelling, Elsevier, vol. 91(C), pages 487-501.
    16. Nicola Gagliardi & Benoît Mahy & François Rycx, 2020. "Trade, GVCs, and wage inequality: Theoretical and empirical insights," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(2), pages 115-134.
    17. Campos, Nauro F. & Eichenauer, Vera Z. & Sturm, Jan-Egbert, 2020. "Close encounters of the European kind: Economic integration, sectoral heterogeneity and structural reforms," European Economic Review, Elsevier, vol. 129(C).
    18. Jesmin Rahman & Ara Stepanyan & Jessie Yang & Mr. Li Zeng, 2015. "Exports in a Tariff-Free Environment: What Structural Reforms Matter? Evidence from the European Union Single Market," IMF Working Papers 2015/187, International Monetary Fund.
    19. Christian Bjørnskov & Niklas Potrafke, 2012. "Political Ideology and Economic Freedom Across Canadian Provinces," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 38(2), pages 143-166.
    20. Matthieu Crozet & Emmanuel Milet & Daniel Mirza, 2013. "The Discriminatory Effect of Domestic Regulations on International Trade in Services: Evidence from Firm-Level Data," Post-Print halshs-00801398, HAL.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:2019/269. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.