The impact of domestic regulations on international trade in services: Evidence from firm-level data

Crozet, Matthieu; Milet, Emmanuel; Mirza, Daniel

doi:10.1016/j.jce.2015.11.004

Cited by 46 publications

(14 citation statements)

References 41 publications

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“…While the OECD PMR mainly targets domestic regulation which is de jure non-discriminatory (i.e. the restrictions are applied by Belgium to all firms regardless of the origin country), it represents de facto a serious obstacle to cross-border trade (Crozet et al, 2016). This is because domestic regulation is usually designed with domestic suppliers in mind.…”

Section: Datamentioning

confidence: 99%

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The interconnections between services and goods trade at the firm-level

Ariu

Breinlich

Corcos

et al. 2019

Journal of International Economics

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In this paper we study how international trade in goods and services interact at the firm level. Using a rich dataset on Belgian firms during the period 1995-2005, we show that: i) firms are much more likely to source services and goods inputs from the same origin country rather than from different ones; ii) increases in barriers to imports of goods reduce firm-level imports of services from the same market, and conversely. We build upon a discrete-choice model of goods and services input sourcing that can reproduce these facts to design our econometric strategy and use the estimated model for counterfactual analysis. In particular, we look at the quantitative impact of reductions in goods and services barriers between the US and the EU. Our findings have important implications for the design of trade policy. They suggest that a liberalization of service trade can have quite direct and sizable effects on goods trade and vice-versa, and that jointly liberalizing goods and services trade brings about substantial complementarities.

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Section: Datamentioning

confidence: 99%

“…Other papers (e.g. Crozet et al (2016)) have used the OECD PMR index as a measure of service trade barriers for the same reasons. Now, while the PMR index varies across sectors and over time, it does not vary across the origin countries from which Belgium imports.…”

Section: Datamentioning

confidence: 99%

The interconnections between services and goods trade at the firm-level

Ariu

Breinlich

Corcos

et al. 2019

Journal of International Economics

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“…As already noted, domestic reforms as captured by the EBRD indicators include trade policy aspects. Moreover, for many services sectors, domestic regulatory restrictions represent de facto trade restrictions (Crozet, Milet, & Mirza, ). For these reasons, we can expect strong similarity between the services policy changes that are the focus of our analysis and investigations that focus on the effects of liberalisation of tariffs on intermediate good imports.…”

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confidence: 99%

Services policy reform and manufacturing employment: Evidence from transition economies

Fiorini

Hoekman²,

Malgouyres

2018

World Economy

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Policy reforms targeting the services sectors are a neglected dimension of the process of structural transformation and economic development. The effects of such reforms on employment across industries as a function of their use of services as intermediate inputs are theoretically ambiguous and remain largely understudied. This paper uses sector‐level data for 24 transition economies for the 1990–2012 period to assess the impacts of services policy reforms on downstream manufacturing employment. We find a negative effect of services reforms on manufacturing sector employment. This is mostly associated with the process of transition to a market‐based economy. Controlling for transition‐specific dynamics, the data suggest a neutral effect of progress towards adopting “best practice” policies for upstream services on employment in downstream manufacturing. Furthermore, in line with the extant literature, we confirm that services policy reforms enhance productivity of downstream manufacturing industries. Finally, we find that the negative effects on downstream employment are mitigated in countries with better economic governance and human capital.

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“…Loayza, Oviedo, and Servén (2005a,b) find a positive and statistically significant correlation between informality on the one hand, and a broader product market index combining density of regulation pertaining to labor, entry, trade, financial markets, bankruptcy, and contract enforcement on the other. Moreover, a number of studies have shown the relationship between regulation and corruption (see overview in Madani and Licetti (2010)), technology adaptation in firms (Riordan 1992), foreign direct investment (Busse and Groizard 2008), international trade (Crozet and Mirza 2016), innovation (Marcos and Santaló 2010), productivity (Crafts 2006), and employment (Noe 2011).…”

Section: Assist Sectoral Regulators In Developing a Culture And Specimentioning

confidence: 99%

Regulatory Tools, Effective Markets, and Private Sector Participation in the Forestry and Wood Products Processing Sectors

2019

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This report has been developed as part of a World Bank Group (WBG) program to build knowledge and capacity for developing practical approaches to strengthening forest governance, through the creation of joint knowledge products by the Governance Global Practice (GGP) and the Program on Forests (PROFOR). Contributions from the Business Regulation Unit, in the Macroeconomics, Trade and Investment (MTI) Global Practice have aimed to introduce multisector approaches in the WBG forest administration and management portfolio, notably on private sector dimensions.

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The impact of domestic regulations on international trade in services: Evidence from firm-level data

Cited by 46 publications

References 41 publications

The interconnections between services and goods trade at the firm-level

The interconnections between services and goods trade at the firm-level

Services policy reform and manufacturing employment: Evidence from transition economies

Regulatory Tools, Effective Markets, and Private Sector Participation in the Forestry and Wood Products Processing Sectors

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