Revisiting the Trade Effects of Services Agreements

22 Pages Posted: 22 Dec 2013

See all articles by Anirudh Shingal

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: September 29, 2013

Abstract

The proliferation of services trade agreements and improved availability of data on bilateral services trade flows has resulted in a growing literature on the theoretical and empirical assessment of services trade effects. In this paper, we revisit the trade effects of services agreements using an updated database on bilateral services trade flows from the OECD and based on recent developments in the estimation of structural gravity models. Our results suggest a services trade effect of 13.7% at the intensive margin, with significantly higher estimates for intra-EU trade. However, the trade effect becomes weakly significant when the estimation includes zero trade flows. Incorporation of anticipation effects in the analyses accentuates the average treatment effect significantly (and monotonically with time) but only at the intensive margin.

Keywords: Services trade, PTAs, gravity model, endogeneity, anticipation effects

JEL Classification: F10, F14, F15

Suggested Citation

Shingal, Anirudh, Revisiting the Trade Effects of Services Agreements (September 29, 2013). Available at SSRN: https://ssrn.com/abstract=2370658 or http://dx.doi.org/10.2139/ssrn.2370658

Anirudh Shingal (Contact Author)

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

Munshi Nagar, Dadabhai Road
Andheri West
Mumbai, Maharashtra 119579
India

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS) ( email )

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50016 San Domenico di Fiesole
Florence, Florence 50014
Italy

University of Bern - World Trade Institute ( email )

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Bern, 3012
Switzerland

HOME PAGE: http://www.nccr-trade.org

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