Date: 2015
Type: Working Paper
Services trade restrictiveness and manufacturing productivity : the role of institutions
Working Paper, EUI RSCAS, 2015/63, Global Governance Programme-185, [Global Economics]
BEVERELLI, Cosimo, FIORINI, Matteo, HOEKMAN, Bernard M., Services trade restrictiveness and manufacturing productivity : the role of institutions, EUI RSCAS, 2015/63, Global Governance Programme-185, [Global Economics] - https://hdl.handle.net/1814/36835
Retrieved from Cadmus, EUI Research Repository
We study the effect of services trade restrictiveness on manufacturing productivity for a broad cross-section of countries at different stages of economic development. Decreasing services trade restrictiveness has a positive indirect impact on the manufacturing sectors that use services as intermediate inputs in production. We identify a critical role of local institutions in shaping this effect: countries with high institutional capacity benefit the most from services trade policy reforms in terms of increased productivity in downstream industries. We argue that this reflects the characteristics of many services and services trade and provide a theoretical framework to formalize our suggested mechanisms.
Cadmus permanent link: https://hdl.handle.net/1814/36835
ISSN: 1028-3625
Series/Number: EUI RSCAS; 2015/63; Global Governance Programme-185; [Global Economics]
Keyword(s): Services trade Institutions Productivity F14 F15 F61 F63
Other topic(s): Economic development
Published version: http://hdl.handle.net/1814/44664