Dark Costs, Missing Data: Shedding Some Light on Services Trade
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.
Research for this paper has been supported in part by the governments of Norway, Sweden, and the United Kingdom through the Multidonor Trust Fund for Trade and Development, and by the UK Department for International Development (DFID). The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent, or any of the aforementioned individuals or institutions. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
James E. Anderson & Ingo Borchert & Aaditya Mattoo & Yoto V. Yotov, 2018. "Dark Costs, Missing Data: Shedding Some Light on Services Trade," European Economic Review, . citation courtesy of