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    Services Policies and Manufacturing Exports

    Shepherd, Ben | December 2018
    Abstract
    This paper uses a structural gravity model to show the effects of services policies on manufacturing exports. Whereas the previous literature has focused on indirect effects of policies—flowing through productivity effects in domestic services markets—we look at direct effects, namely the ability of domestic manufacturers to access services inputs on world markets at competitive prices. Our results show that discriminatory barriers to services trade have a significant negative effect on manufacturing exports. We use theory-consistent counterfactual simulations to show that the trade and real output effects of a 10% reduction in services trade restrictiveness are in fact much larger than those of a 10% reduction in tariffs. On a policy level, our results suggest that an additional argument for liberalizing services markets is that it in fact aids manufacturing sector development, due to the intimate links between the two.
    Citation
    Shepherd, Ben. 2018. Services Policies and Manufacturing Exports. © Asian Development Bank Institute. http://hdl.handle.net/11540/9480.
    Keywords
    Aquaculture Development
    Development Economics
    Export Development
    Regional Development
    Trade Flows
    Trade And Development
    Food Security And Trade
    Trade Volume
    Trade Potential
    Trade Flows
    External Trade
    Industrial policy
    New technology
    Innovations
    Industry
    Export policy
    Import policy
    Trade Unions
    Economic development
    Development potential
    Fishery projects
    Local Industry
    Fishery Economics
    Fishery Product Processing
    Trade development
    Import volume
    Export volume
    Food trade
    Food industry and trade
    Fishery products
    Economic development projects
    Developing countries
    Developing island countries
    Partnership
    Joint venture
    System analysis
    Labor and globalization
    Labor policy
    Regional trading blocs
    Foreign trade and employment
    Developing countries
    Industrial priorities
    Technological innovation
    Technology transfer
    Foreign trade regulation
    Industrial relations
    Trade-unions
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    Citable URI
    http://hdl.handle.net/11540/9480
    Metadata
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    adbi-wp908.pdf (263.1Kb)
    Author
    Shepherd, Ben
    Theme
    Industry
    Trade
     
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise