The Incidence of Geography on Canada's Services Trade

James E. Anderson, Catherine A. Milot, Yoto V. Yotov

NBER Working Paper No. 17630
Issued in December 2011
NBER Program(s):   ITI

We estimate geographic barriers to export trade in nine service categories for Canada's provinces from 1997 to 2007 using the structural gravity model. Constructed Home, Domestic and Foreign Bias indexes (the last two new) capture the direct plus indirect effect of services trade costs on intra-provincial, inter-provincial and international trade relative to their frictionless benchmarks. Barriers to services international trade are huge relative to inter-provincial trade and large relative to goods international trade. A novel test confirms the fit of structural gravity with services trade data.

You may purchase this paper on-line in .pdf format from ($5) for electronic delivery.

Information about Free Papers

You should expect a free download if you are a subscriber, a corporate associate of the NBER, a journalist, an employee of the U.S. federal government with a ".GOV" domain name, or a resident of nearly any developing country or transition economy.

If you usually get free papers at work/university but do not at home, you can either connect to your work VPN or proxy (if any) or elect to have a link to the paper emailed to your work email address below. The email address must be connected to a subscribing college, university, or other subscribing institution. Gmail and other free email addresses will not have access.


Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w17630

How Much Does Geography Deflect Services Trade? Canadian Answers James E. Anderson Catherine A. Milot Yoto V. Yotov Boston College and NBER DFAIT Drexel University International Economic Review, forthcoming

Users who downloaded this paper also downloaded these:
Lipsey w12271 Measuring International Trade in Services
Li, Whalley, and Yan w16273 Foreign Affiliate Sales and Trade in Both Goods and Services
Markusen and Strand w12816 Trade in Business Services in General Equilibrium
Anderson and Yotov w14423 The Changing Incidence of Geography
Bernard, Jensen, Redding, and Schott w17627 The Empirics of Firm Heterogeneity and International Trade
NBER Videos

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email:

Contact Us