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What drives trade in services?: Lessons from the Nordics
Örebro University, Örebro University School of Business. Trade and Agriculture Directorate, OECD, Paris, France.ORCID iD: 0000-0002-5944-3768
2018 (English)In: Applied Economics, ISSN 0003-6846, E-ISSN 1466-4283, Vol. 50, no 33, p. 3532-3545Article in journal (Refereed) Published
Abstract [en]

This article makes an empirical assessment of the relative importance of non-actionable institutional and cultural factors and actionable policy measures for services market integration, using the Nordic countries as a case study. The Nordics are an ideal case as they are perceived to be a cluster of similar countries, but they have chosen different relations to the European Union (EU) and the rest of the world. First, comparing actionable and non-actionable determinants of services trade, I find that policy-determined free trade agreements (FTAs) boost services trade by 75% and a single market by an additional 45%, while the accumulated effect of all standard non-actionable shared geographical, institutional and cultural features (sharing a land border, language, colonial past and legal origin) almost triples services trade. Having controlled for all these determinants, intra-Nordic trade in services is more than three times the predicted value. An unexplained Nordic bias of this magnitude indicates that full integration of services markets may rely on deeper institutional and cultural factors.

Place, publisher, year, edition, pages
Routledge, 2018. Vol. 50, no 33, p. 3532-3545
Keywords [en]
Services trade, trade barriers, regulation, institutions, F13, F14
National Category
Economics
Identifiers
URN: urn:nbn:se:oru:diva-66938DOI: 10.1080/00036846.2018.1430334ISI: 000430711500001Scopus ID: 2-s2.0-85041014397OAI: oai:DiVA.org:oru-66938DiVA, id: diva2:1205418
Available from: 2018-05-14 Created: 2018-05-14 Last updated: 2018-05-14Bibliographically approved

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Kyvik Nordås, Hildegunn

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CiteExportLink to record
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  • apa
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  • de-DE
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