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GTAP Resources: Resource Display

GTAP Resource #6564

"Services Trade Policies and Services Trade Costs: New Evidence for African Economies "
by Borchert, Ingo, Joscelyn Magdeleine and Juan A. Marchetti

Services trade is instrumental for economic development, structural transformation and trade diversification in developing countries. Yet there is a paucity of information on applied services trade policies especially in less developed economies. The Services Trade Policy Database (STPD), jointly developed by the World Bank and the World Trade Organization, addresses this knowledge gap. Its global coverage has been significantly expanded through a major ongoing update that focuses on the African Union, partly supported by the German Development Agency GIZ, the European Commission and the International Trade Centre (ITC) as part of their support to the African Continental Free Trade Area (AfCFTA) negotiations. In this paper, we present evidence on policy restrictiveness in services sectors for 27 African economies for 2020/2021. As such, we expect these data to be useful for a range of analyses that tackle the economics of regional integration and cooperation in services sectors.

The paper makes three principal contributions: firstly, it describes the regulatory data, which represent a global public good for researchers and many other stakeholders. The data cover 23 services subsectors across five essential/infrastructure sectors (Financial, Telecom, Distribution, Transportation, and Professional Services). Secondly, we quantify the policy information using the latest WB-WTO Services Trade Restrictions Indices (STRI) methodology, which is based on a conceptually new approach that facilitates quantitative analyses of services trade costs. Thirdly, we combine the new policy index with actual trade flow information and structural gravity theory to estimate ad valorem equivalent (AVEs) trade cost changes for African economies. In doing so, we capitalize on the modular and transparent structure of the WB-WTO STRI to illustrate how the new index lends itself to simulating the trade cost implications of policy changes.

Resource Details (Export Citation) GTAP Keywords
Category: 2022 Conference Paper
Status: Not published
By/In: Presented during the 25th Annual Conference on Global Economic Analysis (Virtual Conference)
Date: 2022
Version: 1
Created: Borchert, I. (4/14/2022)
Updated: Borchert, I. (6/8/2022)
Visits: 589
- Other data bases and data issues
- Foreign direct investment
- Non-Tariff measures in services
- Trade in services

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Special Instructions
Paper and Presentation are preliminary drafts. Not for circulation.

Comments (1 posted)
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Posted by: Borchert, Ingo   5/30/2022 3:28:00 PM
Paper and Presentation are preliminary drafts. NOT FOR PUBLICATION OR CIRCULATION