27 May 2014    Working Papers
Egger, Peter , MILE 02, Anirudh Shingal

Determinants of services trade agreements

Determinants of services trade agreements

Working paper by Anirudh Shingal & Peter Egger

Given the rise of services preferentialism in the last decade and the importance of domestic regulation for services trade, this paper examines the role of regulatory incidence and convergence as determinants of services trade agreements (STAs). Our results suggest that regulation is an important determinant of STA membership. They also suggest that geography, common institutions and pre-existing trade matter more than economic size and factor endowments for addressing regulatory incidence and convergence in services negotiations. Finally, we find that countries displaying greater regulatory convergence and less restrictive regulation are also more likely candidates for reciprocal services liberalization.

NCCR working paper no. 2014/6