Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/123229 
Year of Publication: 
2015
Series/Report no.: 
CESifo Working Paper No. 5577
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
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 flexibly infer border barriers are often missing for services, we derive 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. We find 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.
Subjects: 
gravity
services trade
trade costs in services
home bias
border effects
JEL: 
F13
F14
F16
Document Type: 
Working Paper
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