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Services trade protection and economic isolation
journal contribution
posted on 2023-06-08, 23:38 authored by Ingo BorchertIngo Borchert, Batshur Gootiiz, Arti Grover, Aaditya MattooPoor connectivity is conventionally blamed on difficult geography and low income. But economic isolation could also result from policy choices in key ‘linking’ services such as air transportation and telecommunications. A new database on applied services trade policies reveals that many countries restrict trade in the very services that connect them with the rest of the world. We present evidence that restrictive policies lead to more concentrated market structures and limited access to services, even after taking into account the influence of geography and income. Moving from an intermediate level of restrictiveness to an open regime could lead to a 20 percentage point increase in cellular teledensity in the telecommunications sector and to a 25 per cent increase in flight connections per airline in the aviation sector, respectively.
History
Publication status
- Published
Journal
World EconomyISSN
0378-5920Publisher
Blackwell PublishingExternal DOI
Issue
3Volume
40Page range
632-652Department affiliated with
- Economics Publications
Full text available
- No
Peer reviewed?
- Yes
Legacy Posted Date
2015-12-03Usage metrics
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