English, Article, Journal or magazine article edition: Services Trade and Domestic Regulation henk Kox; Hildegunn Kyvik Nordås

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Bookmark: http://trove.nla.gov.au/version/87016
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Services Trade and Domestic Regulation
Author
  • henk Kox
  • Hildegunn Kyvik Nordås
Physical Description
  • preprint
Notes
  • This paper argues that regulatory measures affect the fixed cost of entering a market as well as the variable costs of servicing that market. Moreover, differences in regulation among countries often imply that firms have to incur entry costs in every new market. Indicators of regulatory intensity and heterogeneity are introduced in a gravity model and their impact on market entry and subsequent trade flows estimated for total services, business services and financial services. It is found that regulatory heterogeneity has a relatively large negative impact on both market entry and subsequent trade flows. Further, regulatory barriers have a negative effect on the local services sectors’ export performance. Finally it is found that regulations that aims at correcting market failure can have a positive impact on trade. It is concluded that services trade liberalization and regulatory reforms are complementary in creating competitive services markets.
  • RePEc:oec:traaab:49-en
Language
  • English
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