The Tradability of Services within Canada and the European Union |
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Authors: | Arjan Lejour Jan-Willem de Paiva Verheijden |
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Affiliation: | 1. CPB Netherlands Bureau for Economic Policy Analysis , PO Box 80510, 2508, GM, The Hague, The Netherlands E-mail: a.m.lejour@cpb.nl;2. European Commission , Internal Market and Services Directorate-General E-mail: jan-willem.verheijden@ec.europa.eu |
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Abstract: | This paper analyses bilateral trade flows between the provinces of Canada and between the member states of the European Union using a gravity model. On average, distance is less a hindrance for services trade than for goods trade. Language and regulation differences hamper intra-EU trade significantly. Services trade, in contrast to goods trade, is also hampered by the level of regulation in the importing country. Services trade within Canada as a share of GDP is twice the intra-EU level, and estimates suggest that intra-EU services trade could more than double if the internal market functioned like the Canadian services market. |
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