Shingal, Anirudh --- "Going beyond the 0/1 dummy: Estimating the effect of heterogeneous provisions in services agreements on services trade" [2016] ELECD 1146; in Sauvé, Pierre; Roy, Martin (eds), "Research Handbook on Trade in Services" (Edward Elgar Publishing, 2016) 107

Book Title: Research Handbook on Trade in Services

Editor(s): Sauvé, Pierre; Roy, Martin

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781783478057

Section: Chapter 5

Section Title: Going beyond the 0/1 dummy: Estimating the effect of heterogeneous provisions in services agreements on services trade

Author(s): Shingal, Anirudh

Number of pages: 16

Abstract/Description:

The proliferation of preferential trade agreements in services (services PTAs) and the improved availability of data on bilateral services trade flows have resulted in a growing literature on the theoretical and empirical assessment of services trade effects. However, this literature has not considered the different types of provisions found in services PTAs while estimating trade effects. We address this issue by taking into account the heterogeneity of provisions found in services PTAs. Our results suggest that accounting for this heterogeneity reduces the magnitudes of the estimated trade effects. This finding is robust to estimations involving only positive and those incorporating zero trade flows as well as to sample coverage (all, EU, non-EU, North-North, North-South).