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The Impact of Mode 4 Liberalization on Bilateral Trade Flows

This paper gives insights into the possible trade creating effects of service trade liberalization via Mode 4. In particular we expect that temporary movements of persons, like permanent movements, have the potential to reduce transaction costs for merchandise trade between home and host country. Exploiting data on H-1B beneficiaries from different origins in the United States and using a gravity model of trade, we find significantly positive effects of temporary movements of persons on bilateral merchandise trade. In addition to this, the paper provides insights into the determinants of temporary movements of persons.

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Nº: ERSD-2005-06

Autores:

Marion Jansen and Roberta Piermartini — OMC

Fecha de redacción: noviembre de 2005

Palabras clave

Mode 4, bilateral trade flows, services liberalization, WTO

Código JEL

C30, F13, F15, F29

 

Declinación de responsabilidad  volver al principio

This is a working paper, and hence it represents research in progress. This paper represents the opinions of the author, and is the product of professional research. It is not meant to represent the position or opinions of the WTO or its Members, nor the official position of any staff members. Any errors are the fault of the author. Copies of working papers can be requested from the divisional secretariat by writing to: Economic Research and Statistics Division, World Trade Organization, rue de Lausanne 154, CH 1211 Genève 21, Switzerland. Please request papers by number and title.

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