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Measuring the cost of international trade in services

Published online by Cambridge University Press:  14 May 2013

SÉBASTIEN MIROUDOT ,
JEHAN SAUVAGE  and
BEN SHEPHERD
SÉBASTIEN MIROUDOT
Affiliation:
Senior Trade Policy Analyst, OECD
JEHAN SAUVAGE
Affiliation:
Junior Analyst, OECD
BEN SHEPHERD*
Affiliation:
Principal, Developing Trade Consultants Ltd
*
*Corresponding author [email protected]
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Abstract

We present a new dataset of international trade costs in services sectors. Using a theory-based methodology combined with data on domestic shipments and cross-border trade, we find that trade costs in services are much higher than in goods sectors: a multiple of two to three times in many cases. Trade costs in services have remained relatively steady over the last ten years, whereas trade costs in goods have fallen overall at an impressive rate. We show that even in a regional grouping that has done much to promote a single market in services–the EU–there remains considerable heterogeneity in trade costs across countries. Our findings generally suggest an important role for future policy reforms to reduce the regulatory burdens facing services sectors and facilitate trade in services.

Type
Review Article
Information
World Trade Review , Volume 12 , Issue 4 , October 2013 , pp. 719 - 735
Copyright
Copyright © Sébastien Miroudot, Jehan Sauvage and Ben Shepherd 2013 

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