Does behind-border measures on trade in services affect bilateral service exports?An empirical test based on cross-country and cross-industry panel data

【Author】

QI Junyan;GAO Ming

【Institution】

School of Economics in Tianjin University of Finance and Economics;Tianjin Academy of Free Trade Area

【Abstract】

As a direct index reflecting the opening up of the service industry, the behind-border measures of trade in services cannot be ignored. Based on the data from OECD-STRI database, this paper analyzes the impact of behind-border measures of services trade in five policy fields. By constructing a monopolistic competition model, this paper has demonstrated the relationship between the difference of measures behind-border of trading partners and the bilateral service exports. Among them, STRI and STRIH indicators were selected respectively, and the panel data of 10 major service industries in33 countries from 2014 to 2016 were used to examine the impact of behind-border measures of trading partners. The results are substantially consistent with the theory: Firstly, the behind-border measures of trading partners and their differences have significantly hindered the export of bilateral services; Secondly, considering the differences in market structure between the two countries, the degree of hindrance to service export caused by the differences in behind-border measures between countries is alleviated. In addition, the measures in different service industries have different impact on services export. The robustness test further confirmed the above results.

【Keywords】

behind-border measures of trade in services;difference in services trade restriction;extended panel gravity model

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