Type: Working Paper
Determinants of services trade agreement membership
Working Paper, EUI RSCAS, 2018/29, Global Governance Programme-307, [Global Economics]
EGGER, Peter H., SHINGAL, Anirudh, Determinants of services trade agreement membership, EUI RSCAS, 2018/29, Global Governance Programme-307, [Global Economics] - https://hdl.handle.net/1814/55284
Retrieved from Cadmus, EUI Research Repository
Since about a decade, we have seen a surge in interest as well as in the use of services preferentialism and unilateral services regulations. This paper provides an economic explanation of services regulation and services preferentialism, including their interaction. The paper derives hypotheses based on a numerical welfare analysis where tradable services are treated as a secondary (produced) input in the production of tradable goods. Apart from hypotheses on the emergence of services trade agreements (STAs), the paper derives ones on the stringency of unilateral services provision- a general services trade restrictiveness. For instance, one of the hypotheses is that services trade restrictiveness is endogenous, and it is aligned with economic fundamentals. Another hypothesis suggests that countries are more likely to participate in STAs if the partners' general, unilateral services trade restrictiveness is more similar to theirs. These and other hypotheses are supported by data.
Cadmus permanent link: https://hdl.handle.net/1814/55284
Series/Number: EUI RSCAS; 2018/29; Global Governance Programme-307; [Global Economics]
Keyword(s): Services trade agreements Services trade restrictiveness Preferential trade liberalization Services trade Economic determinants of trade liberalization F10 F13 F15
Other topic(s): Trade, investment and international cooperation
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