Granting Preferential Market Access in Services Sequentially Versus Jointly with Goods

36 Pages Posted: 7 Dec 2017

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 2017

Abstract

Despite the cost and resource‐effectiveness of joint trade negotiations and complementarities between goods and services‐trade flows, more than 12% of the 132 WTO‐notified services‐trade agreements (STAs) in force until August 2015 were entered into effect sequentially to goods‐trade accords. This stylised fact motivates our study of the determinants of joint versus sequential negotiation/accession of goods and services accords, a subject hitherto unexplored in the growing literature on the determinants of STA membership. Our results suggest larger marginal effects of fundamental economic, geographic, institutional, doing business and services regulatory factors on the propensity of joint negotiation/accession compared to STA formation alone. Moreover, cultural‐distance variables are only found to affect the likelihood of joint preferential liberalisation of goods and services trade, without influencing STA‐only membership.

Keywords: determinants of trade‐agreement membership, goods‐trade agreements, joint versus sequential negotiation, services‐trade agreements, services‐trade‐restrictiveness index

Suggested Citation

Egger, Peter H. and Shingal, Anirudh, Granting Preferential Market Access in Services Sequentially Versus Jointly with Goods (December 2017). The World Economy, Vol. 40, Issue 12, pp. 2901-2936, 2017, Available at SSRN: https://ssrn.com/abstract=3083244 or http://dx.doi.org/10.1111/twec.12523

Peter H. Egger (Contact Author)

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

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CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

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Anirudh Shingal

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

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

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