Arbeitspapier

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

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.

Language
Englisch

Bibliographic citation
Series: NBB Working Paper ; No. 329

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

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

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Ariu, Andrea
  • Breinlich, Holger
  • Corcos, Gregory
  • Mion, Giordano
  • National Bank of Belgium

Time of origin

  • 2017

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