Research Handbook on Trade in Services
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Research Handbook on Trade in Services

Edited by Pierre Sauvé and Martin Roy

This Research Handbook explores the latest frontiers in services trade by drawing on insights from empirical economics, law and global political economy. The world’s foremost experts take stock of the learning done to date in services trade, explore policy questions bedevilling analysts and direct attention to a host of issues, old and new, confronting those interested in the service economy and its rising salience in cross-border exchange. The Handbook’s 22 chapters shed informed analytical light on a subject matter whose substantive remit continues to be shaped by rapid evolutions in technology, data gathering, market structures, consumer preferences, approaches to regulation and by ongoing shifts in the frontier between the market and the state.
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Chapter 5: Going beyond the 0/1 dummy: Estimating the effect of heterogeneous provisions in services agreements on services trade

Anirudh Shingal


The proliferation of preferential trade agreements in services (services PTAs) and the improved availability of data on bilateral services trade flows have resulted in a growing literature on the theoretical and empirical assessment of services trade effects. However, this literature has not considered the different types of provisions found in services PTAs while estimating trade effects. We address this issue by taking into account the heterogeneity of provisions found in services PTAs. Our results suggest that accounting for this heterogeneity reduces the magnitudes of the estimated trade effects. This finding is robust to estimations involving only positive and those incorporating zero trade flows as well as to sample coverage (all, EU, non-EU, North-North, North-South).

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