Dark Costs, Missing Data: Shedding Some Light on Services Trade

64 Pages Posted: 14 Sep 2015

See all articles by James E. Anderson

James E. Anderson

Boston College - Department of Economics; National Bureau of Economic Research (NBER)

Ingo Borchert

World Bank - Development Research Group (DECRG)

Aaditya Mattoo

World Bank - Development Research Group (DECRG)

Yoto Yotov

Drexel University - Department of Economics & International Business

Date Written: September 2015

Abstract

A structural gravity model is used to estimate barriers to services trade across many sectors, countries and time. Since the disaggregated output data needed to flexibly infer border barriers are often missing for services, we derive a novel methodology for projecting output data. The empirical implementation sheds light on the role of institutions, geography, size and digital infrastructure as determinants of border barriers. We find that border barriers have generally fallen over time but there are differences across sectors and countries. Notably, border effects for the smallest economies have remained stable, giving rise to a divergent pattern across countries.

Suggested Citation

Anderson, James E. and Borchert, Ingo and Mattoo, Aaditya and Yotov, Yoto, Dark Costs, Missing Data: Shedding Some Light on Services Trade (September 2015). NBER Working Paper No. w21546. Available at SSRN: https://ssrn.com/abstract=2660005

James E. Anderson (Contact Author)

Boston College - Department of Economics ( email )

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National Bureau of Economic Research (NBER)

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Ingo Borchert

World Bank - Development Research Group (DECRG) ( email )

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Aaditya Mattoo

World Bank - Development Research Group (DECRG) ( email )

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HOME PAGE: http://econ.worldbank.org/staff/amattoo

Yoto Yotov

Drexel University - Department of Economics & International Business ( email )

3141 Chestnut St.
Philadelphia, PA 19104
United States

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