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1 Aug 2014    Working Papers
MILE 02, Anirudh Shingal


Exploring complementarities between goods and services trade in trade agreements

Exploring complementarities between goods and services trade in trade agreements

NCCR working paper by Scott Baier and Anirudh Shingal

More than three decades of research on trade costs and goods trade have unveiled fundamental insights into the determinants, the nature and the consequences of goods trade agreements. A cottage literature has also evolved studying similar issues from a services trade perspective, but the two-way interaction between goods and services trade has not been explored formally. We
bridge this gap by providing a formal treatment of the inter-linkages between goods and services trade. The model provides insights into how trade agreements impact goods and services trade. We also explore the impact of the complementarities of goods and services agreements on goods and services trade empirically using bilateral goods and services trade data for OECD and BRICS trading partners over 1995-2010.

NCCR working paper No 2015/20