Partial liberalization of services trade boosts real incomes by nearly 5%
The article estimates the impact of reducing barriers to trade in services using data from the OECD. The study shows that countries with more restrictions on services trade experience lower levels of trade. By partially liberalizing services trade, countries can expect an average increase in real income of 4.8%. The most restrictive countries benefit the most from this liberalization, as they gain access to cheaper sources and become more attractive as trade partners.