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Sébastien Miroudot and Ben Shepherd

The chapter builds on recent work measuring trade in value added and developing methodologies for estimating trade costs in order to empirically assess the costs faced by services exporters in the context of global value chains. The chapter first calculates trade costs for intermediate and final services and compares these costs across countries and sectors, as well as with similar costs faced by goods exporters. It then uses these measures of services trade costs along with new policy data from the OECD's Services Trade Restrictiveness Index (STRI) to analyze the determinants of trade costs in each instance, and identify policy implications.