Working Paper: CEPR ID: DP1705
Authors: Bernard Hoekman; Carlos A. Primo Braga
Abstract: This paper surveys the literature on trade in services, focusing on the policies that are used to restrict such trade, the gains from liberalization, and the institutional mechanisms that have been adopted in the pursuit of liberalization. It argues that technological progress and international trade negotiations are likely to keep liberalization of trade in services a high profile policy issue. It also suggests that the research agenda should focus on developing better estimates of the welfare costs of protectionism in the service sector. This will require the quantification of barriers to the international exchange of services.
Keywords: trade in services; protectionism; world trade organization; trade negotiations
JEL Codes: F13; F23
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Trade liberalization in services (F13) | Economic welfare (D69) |
| Barriers to trade in services (L88) | Economic performance (P17) |
| Removal of trade barriers (F13) | Enhanced service provision (O35) |
| Removal of trade barriers (F13) | Increased foreign direct investment (FDI) (F21) |
| Increased foreign direct investment (FDI) (F21) | Economic growth (O00) |
| Trade liberalization in services (F13) | Improved quality of services (L15) |
| Technological progress (O49) | Internationalization of services (L86) |
| Regulatory reforms (G18) | Effective liberalization (F69) |