Barriers to Service Trade Reduces Exports by 8%, Study Finds
The article explores how restrictions on the movement of service suppliers impact services trade. By creating an index to measure these barriers, the researchers found that higher restrictiveness in Mode 4 trade reduces bilateral services exports by 8%. This effect is even more significant for intermediate services exports. The study also shows a negative correlation between the index and services imports delivered non-digitally, indicating connections between different ways of providing services. The results vary across different services sectors, highlighting the complexity of the relationship between trade barriers and services trade.