Date: 2017
Type: Working Paper
Services trade policy : domestic regulation and economic governance
Working Paper, European Commission, European Economy Discussion Paper, 2017/058
FIORINI, Matteo, HOEKMAN, Bernard M., Services trade policy : domestic regulation and economic governance, European Commission, European Economy Discussion Paper, 2017/058 - https://hdl.handle.net/1814/50364
Retrieved from Cadmus, EUI Research Repository
This paper empirically investigates the role of governance institutions in shaping the economic impact of services trade reform. The analysis focuses on the effects of services trade policy on the productivity of manufacturing sectors that use services as intermediate inputs. We find that these effects depend on the quality of governance institutions in the country implementing trade and investment reform. The moderating effects of horizontal (cross-cutting) and services sector-specific dimensions of economic governance institutions are found to differ. For some services activities market access opening can substitute for weak regulation/governance; in others bad regulatory governance is a binding constraint and needs to be addressed directly for market opening to have the greatest benefits. Our empirical findings suggest these complementarity and substitution relationships may be associated with the types of market failure that arise in different services sectors and the effectiveness of regulatory regimes in addressing them. We also find that positive effects of services trade and investment reforms are higher in EU member states.
Cadmus permanent link: https://hdl.handle.net/1814/50364
Full-text via DOI: 10.2765/157792; 10.2765/148318
ISBN: 9789279649073; 9789279649080
ISSN: 2443-8022
External link: https://ec.europa.eu/info/sites/info/files/dp058_en.pdf
Series/Number: European Commission; European Economy Discussion Paper; 2017/058
Keyword(s): Services reforms Institutions Governance Productivity EU F61 L8 O43