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

65 Pages Posted: 20 Apr 2016 Last revised: 27 Apr 2018

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: October 29, 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 infer border barriers flexibly are often missing for services, this paper derives 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. The paper finds 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.

Keywords: International Trade and Trade Rules, Trade and Services, Transport Services, Insurance & Risk Mitigation, Construction Industry, Common Carriers Industry, Food & Beverage Industry, Pulp & Paper Industry, Textiles, Apparel & Leather Industry, Business Cycles and Stabilization Policies, General Manufacturing, Plastics & Rubber Industry

Suggested Citation

Anderson, James E. and Borchert, Ingo and Mattoo, Aaditya and Yotov, Yoto, Dark Costs, Missing Data: Shedding Some Light on Services Trade (October 29, 2015). World Bank Policy Research Working Paper No. 7465. Available at SSRN: https://ssrn.com/abstract=2683690

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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