In this paper we study how international trade in goods and services interact at the firm level. Using a rich dataset on Belgian firms for the period 1995-2005, we show that: i) firms are much more likely to source services and goods inputs from the same origin country rather than from different ones; ii) joint imports are associated with higher firm productivity; iii) increases in barriers to imports of goods reduce firm-level imports of services from the same market, and conversely. We build upon a discrete-choice model of goods and services input sourcing that can reproduce these facts to guide our econometric strategy. We use our results to quantify the impact of reductions in goods and services barriers between the US and the EU. Our findings have important implications for the design of trade policy. They suggest that a liberalization of services trade can have direct and sizable effects on goods trade, and vice versa. Moreover, liberalizing goods and services trade jointly brings substantial complementarities.
The interconnections between services and goods trade at the firm-level / A. Ariu, H. Breinlich, G. Corcos, G. Mion. - In: JOURNAL OF INTERNATIONAL ECONOMICS. - ISSN 0022-1996. - 116(2019), pp. 173-188. [10.1016/j.jinteco.2018.10.005]
The interconnections between services and goods trade at the firm-level
A. Ariu;
2019
Abstract
In this paper we study how international trade in goods and services interact at the firm level. Using a rich dataset on Belgian firms for the period 1995-2005, we show that: i) firms are much more likely to source services and goods inputs from the same origin country rather than from different ones; ii) joint imports are associated with higher firm productivity; iii) increases in barriers to imports of goods reduce firm-level imports of services from the same market, and conversely. We build upon a discrete-choice model of goods and services input sourcing that can reproduce these facts to guide our econometric strategy. We use our results to quantify the impact of reductions in goods and services barriers between the US and the EU. Our findings have important implications for the design of trade policy. They suggest that a liberalization of services trade can have direct and sizable effects on goods trade, and vice versa. Moreover, liberalizing goods and services trade jointly brings substantial complementarities.File | Dimensione | Formato | |
---|---|---|---|
9. JIE 2019.pdf
accesso riservato
Tipologia:
Publisher's version/PDF
Dimensione
528.31 kB
Formato
Adobe PDF
|
528.31 kB | Adobe PDF | Visualizza/Apri Richiedi una copia |
ABCM_JIE_final.pdf
accesso aperto
Tipologia:
Pre-print (manoscritto inviato all'editore)
Dimensione
417.18 kB
Formato
Adobe PDF
|
417.18 kB | Adobe PDF | Visualizza/Apri |
Pubblicazioni consigliate
I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.