Barriers to International Trade in Services and Government Policy
Keywords:
barriers, Liberalization, TradeAbstract
When governments and regulatory agencies put up obstacles to the free flow of services across borders, we say that they are barriers to international commerce in services. Legal, cultural, technical, or regulatory hurdles are only a few examples of the many possible types of such challenges. Government policies have a major impact on the prevalence of these obstacles. Strict licensing requirements, bans on foreign ownership, and discriminatory laws are examples of protectionist policies that governments may implement to safeguard indigenous service providers and industries. But these rules could limit competition, hurt foreign service providers' ability to reach customers, and obstruct free service exchanges. The only way to eliminate these barriers and create a more inclusive and transparent global services trade environment is to implement liberalizing measures in tandem with international cooperation and discussion.
References
Su, X., S. Anwar, Y. Zhou and X. Tang (2019), "Services Trade Restrictiveness and Manufacturing Export Sophistication", North American Journal of Economics and Finance, available online 27 August 2019.
Van der Marel, E. and S. Miroudot (2014), "The Economics and Political Economy of Going Beyond the GATS", Review of International Organizations 9(2), pp. 205–239.
Wolfmayr, Y. (2012), "Export Performance and Increased Services Content in Manufacturing", National Institute Economic Review No. 220, April 2012, pp. 36-52.
Brooks, Doug and Benno Ferrarini (2010) “Changing Trade Costs between People’s Republic of China and India”, ADB Economics Working Paper Series No. 203, Asian Development Bank (ADB), Manila
IMF (2009) Balance of Payments Statistics Yearbook 2009 CD ROM, International Monetary Fund, Washington, D.C
De, P. (2008a) “Trade Costs and Infrastructure: Analysis of the Effects of Trade Impediments in Asia”, Integration & Trade Journal, Vol. 12, No. 28, pp. 241- 266.
Deardorff, A. V. and R. M. Stern. (2008) “Empirical Analysis of Barriers to International Services Transactions and the Consequences of Liberalisation”, in Mattoo et al. (2008).
Santos Silva, J.M.C and Tenreyro, S. (2006) "The Log of Gravity," The Review of Economics and Statistics, Vol. 88, No. 4, pp. 641-658
Cheng, I.-H, and H. Wall (2005) “Controlling for Heterogeneity in Gravity Models of Trade and Integration”, Federal Reserve Bank of St. Louis Review, Vol. 87, pp. 49-63
Feenstra, R. (2004) Advanced International Trade: Theory and Evidence, Princeton University Press, Princeton.
This work is licensed under a 