The Role of Goods Trade Networks for Services Trade Volume
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BORIS DOI
Date of Publication
2015
Publication Type
Article
Division/Institute
Series
The World Economy
ISSN or ISBN (if monograph)
1467-9701
Publisher
Wiley & Sons
Language
English
Publisher DOI
Description
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.
File(s)
File | File Type | Format | Size | License | Publisher/Copright statement | Content | |
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The Role of Goods Trade Networks.pdf | text | Adobe PDF | 283.96 KB | accepted |