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

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: NBB Working Paper ; No. 329

Classification and Topics

• Classification: Wirtschaft ; Trade: General ; Trade Policy; International Trade Organizations ; Empirical Studies of Trade ; Industry Studies: Manufacturing: General ; Industry Studies: Services: General
• Subject: Trade in Services ; Trade in Goods ; Complementarity ; Firm-level Analysis ; Discrete Choice Models

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ariu, Andrea ; Breinlich, Holger ; Corcos, Gregory ; Mion, Giordano
• Event: Veröffentlichung
• (who): National Bank of Belgium
• (where): Brussels
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/173782
• Last update: 10.03.2025, 11:44 AM CET