Quantifying Barriers to Trade in Services

Abstract

Given the fact that international trade in services has been increasing significantly in recent decades and now is equal to about 20 percent of global merchandise trade, it is obviously important to consider the barriers that affect services trade and issues of measurement of these barriers. There has been similarly an increasing amount of foreign direct investment (FDI) in both goods and services sectors in and between advanced and developing countries. FDI is subject to a variety of barriers as well and thus merits attention in its own right. This paper reviews the literature on these barriers and presents data from several sources on what the sizes of the barriers to trade and investment in services may be.

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