Determinants of Services Trade Agreements: Regulatory Incidence and Convergence

29 Pages Posted: 22 Sep 2013 Last revised: 21 Dec 2013

See all articles by Peter H. Egger

Peter H. Egger

Ifo Institute for Economic Research - International Trade and Foreign Direct Investment; ETH Zurich; Ludwig-Maximilians University of Munich; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Anirudh Shingal

S.P. Jain Institute of Management & Research; European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS); University of Bern - World Trade Institute

Date Written: December 2013

Abstract

Given the rise of services preferentialism in the last decade and the importance of domestic regulation for services trade, this paper examines the role of regulatory incidence and convergence as determinants of services trade agreements (STAs). Our results suggest that regulation is an important determinant of STA membership. They also suggest that geography, common institutions and pre-existing trade matter more than economic size and factor endowments for addressing regulatory incidence and convergence in services negotiations. Finally, we find that countries displaying greater regulatory convergence and less restrictive regulation are also more likely candidates for reciprocal services liberalization.

Keywords: Services trade agreements, Economic determinants, STRI, Regulatory convergence

JEL Classification: F10, F13, F15

Suggested Citation

Egger, Peter H. and Shingal, Anirudh, Determinants of Services Trade Agreements: Regulatory Incidence and Convergence (December 2013). Available at SSRN: https://ssrn.com/abstract=2329285 or http://dx.doi.org/10.2139/ssrn.2329285

Peter H. Egger

Ifo Institute for Economic Research - International Trade and Foreign Direct Investment ( email )

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Anirudh Shingal (Contact Author)

S.P. Jain Institute of Management & Research ( email )

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