The interconnections between services and goods trade at the firm-level

Andrea Ariu, Holger Breinlich, Gregory Corcos and Giordano Mion

No 329, Working Paper Research from National Bank of Belgium

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 during 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) 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 design our econometric strategy. The results suggest that a liberalization of service trade has direct and sizable effects on goods trade and vice-versa. Moreover, sourcing goods and services from the same origin brings substantial complementarities to both.

Keywords: Trade in Services; Trade in Goods; Complementarity; Firm-level Analysis; Discrete Choice Models. (search for similar items in EconPapers)
JEL-codes: F10 F13 F14 L60 L80 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2017-10
New Economics Papers: this item is included in nep-dcm, nep-int and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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https://www.nbb.be/doc/ts/publications/wp/wp329en.pdf (application/pdf)

Related works:
Journal Article: The interconnections between services and goods trade at the firm-level (2019)
Working Paper: The interconnections between services and goods trade at the firm-level (2017)
Working Paper: The Interconnections Between Services and Goods Trade at the Firm-Level (2017)
Working Paper: The Interconnections Between Services and Goods Trade at the Firm-Level (2017)
Working Paper: The interconnections between services and goods trade at the firm-Level (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:nbb:reswpp:201710-329

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