Services Trade Protection and Economic Isolation

21 Pages Posted: 22 Mar 2017

See all articles by Ingo Borchert

Ingo Borchert

World Bank - Development Research Group (DECRG)

Batshur Gootiiz

World Bank

Arti Grover Goswami

World Bank

Aaditya Mattoo

World Bank - Development Research Group (DECRG)

Date Written: March 2017

Abstract

Poor connectivity is conventionally blamed on difficult geography and low income. But economic isolation could also result from policy choices in key ‘linking’ services such as air transportation and telecommunications. A new database on applied services trade policies reveals that many countries restrict trade in the very services that connect them with the rest of the world. We present evidence that restrictive policies lead to more concentrated market structures and limited access to services, even after taking into account the influence of geography and income. Moving from an intermediate level of restrictiveness to an open regime could lead to a 20 percentage point increase in cellular teledensity in the telecommunications sector and to a 25 per cent increase in flight connections per airline in the aviation sector, respectively.

Suggested Citation

Borchert, Ingo and Gootiiz, Batshur and Goswami, Arti Grover and Mattoo, Aaditya, Services Trade Protection and Economic Isolation (March 2017). The World Economy, Vol. 40, Issue 3, pp. 632-652, 2017. Available at SSRN: https://ssrn.com/abstract=2938138 or http://dx.doi.org/10.1111/twec.12327

Ingo Borchert (Contact Author)

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

1818 H Street NW
MSN3-311
Washington, DC 20433
United States

Batshur Gootiiz

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Arti Grover Goswami

World Bank ( email )

1818 H Street NW
Washington, DC 20433
United States

Aaditya Mattoo

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

1818 H Street, N.W.
Room MC 3-327
Washington, DC 20433
United States
202-458-8047 (Phone)
202-676-9810 (Fax)

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

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
1
Abstract Views
203
PlumX Metrics