Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/173782
Authors: 
Ariu, Andrea
Breinlich, Holger
Corcos, Gregory
Mion, Giordano
Year of Publication: 
2017
Series/Report no.: 
Working Paper Research 329
Abstract: 
In this paper we study how international trade in goods and services interact at the firm level. Using a rich dataset on Belgian firms during the period 1995-2005, we show that: i) firms are much more likely to source services and goods inputs from the same origin country rather than from different ones; ii) increases in barriers to imports of goods reduce firm-level imports of services from the same market, and conversely. We build upon a discrete-choice model of goods and services input sourcing that can reproduce these facts to design our econometric strategy. The results suggest that a liberalization of service trade has direct and sizable effects on goods trade and vice-versa. Moreover, sourcing goods and services from the same origin brings substantial complementarities to both.
Subjects: 
Trade in Services
Trade in Goods
Complementarity
Firm-level Analysis
Discrete Choice Models
JEL: 
F10
F13
F14
L60
L80
Document Type: 
Working Paper

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