NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Ingo Borchert

Department of Economics
University of Sussex
Brighton, BN1 9SL, United Kingdom

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NBER Working Papers and Publications

September 2015Dark Costs, Missing Data: Shedding Some Light on Services Trade
with James E. Anderson, Aaditya Mattoo, Yoto V. Yotov: w21546
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.
 
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