EU Service Directive boosts service trade by up to 67%! 🚀
The EU Service Directive aimed to reduce administrative barriers for cross-border service trade. The reform increased intra-EU trade in targeted services by 29% to 67%, leading to a welfare increase of 0.39% to 1.32% for member states. The study used a triple-difference strategy and a panel approach to estimate these effects. However, there was trade diversion from domestic flows, and different countries and service sectors were affected differently.