Trade Reform in Services: Structural Change and Production Networks

Trade Reform in Services
READ MORE...
Volume/Issue: Volume 2025 Issue 061
Publication date: March 2025
ISBN: 9798229004763
$20.00
Add to Cart by clicking price of the language and format you'd like to purchase
Available Languages and Formats
English
Prices in red indicate formats that are not yet available but are forthcoming.
Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Exports and Imports , Economics- Macroeconomics , Service , Structural Transformation , Services Trade , Trade Model , European Central Bank , United States , Expenditure , Türkiye , Republic of , Trade in goods , Consumption , Trade in services , Trade policy , Household consumption , International trade organizations , Services sector , Income , Trade liberalization , Consumer prices , Eastern Europe , Global

Summary

We study the effects of services trade reforms in a multi-country multi-sector quantitative trade model with input-output linkages. We find that (i) welfare gains from substantial services trade liberalization are large, around 3 percent on average; (ii) gains are larger by 0.7 percentage points in a hypothetical scenario where EMDEs’ consumption patterns have converged to AEs, and by 5.7 percentage points when their production networks have converged; (iii) both EMDEs and AEs gain from EMDEs reducing services barriers to the level of AEs. Services-intensive AEs with strong supply linkages to EMDEs benefit the most. Our results are important to illustrate the increasing gains from services trade as EMDEs continue on their development trajectory, and therefore call for injecting further ambition into multilateral negotiations on services trade reforms.