Template-Type: ReDIF-Paper 1.0

Author-Name:  Egger, Peter
Author-Name-First: Peter
Author-Name-Last: Egger

Author-Name:  Francois, Joseph
Author-Name-First: Joseph
Author-Name-Last: Francois

Title: The Role of Goods-Trade Networks for Services-Trade Volume
Abstract: 
Abstract

In this paper, we address the role of countries’ goods-trade networks for their services-trade volume. The paper employs a large cross section of bilateral trade data on aggregate cross-border goods and services sales and illustrates that the depth and overlap of two countries’ services networks induce a positive direct impact on their services-trade volume. The evidence takes into account that goods trade flows and networks are potentially endogenous so that the estimated direct effects support a causal interpretation. We find that the magnitude of the multilateral goods-trade network effect on the bilateral services-trade volume is much larger than that of bilateral goods-trade volume.


Creation-Date:  2015-11-08
File-URL: http://www.wti.org/media/filer_public/17/ff/17ffcb96-6a0c-4084-97b8-9f682f94b0df/06_efn_etsg_2015.pdf
File-Format: Application/pdf
File-Function: First version
Handle: RePEc:wti:papers:884