The paper
Using sector-level services restrictions, this paper examines how regulation and regional integration relate to cross-border trade. The results show that the relevant barriers and links between delivery modes differ markedly across services industries.
Research findings
- More restrictive regulation is associated with lower services trade, with clearer and more widespread relationships when restrictions are separated by mode of supply.
- Regional integration is associated with stronger trade in some sectors, especially business and financial services, with much of that result driven by the European Union.
Policy takeaways
- Design reforms around sector-specific regulations and involve the responsible regulators in trade negotiations.
- Consider commercial presence and cross-border supply together: restrictions on one mode can affect trade through another.