Template-Type: ReDIF-Paper 1.0
Author-Name: Alexander Knobel
Author-Name-First: Alexander
Author-Name-Last: Knobel
Author-Email: knobel@iep.ru
Author-Workplace-Name: Gaidar Institute for Economic Policy
Title: THE INFLUENCE OF SERVICES TRADE LIBERALIZATION ON SERVICE FLOWS AND INDUSTRY PRODUCTIVITY IN CIS COUNTRIES AND RUSSIA
Abstract: This paper estimates  the  influence  of  the service sector’s liberalization on service flows in transition economies and on productivity of the Russian industry that uses these services as intermediate consumption. Empirical analysis of the international statistics shows that service trade between CIS countries and OECD countries is strongly underestimated and could grow 2.5–3 times larger due to liberalization. Modeling of the international service trade shows that services  imports  into  Russia  are  strongly  limited  by  existing  trade  barriers.  For  Russia, according to the estimates, the most liberalized service sector is communication services, and the least liberalized sector is information technology. This paper demonstrates that services are actively used by Russian industry as intermediate consumption. On the basis of the inter-industry  empirical  analysis,  one  can  conclude  that  service  sector  liberalization  may  have  a positive impact on the productivity of various sectors of the Russian manufacturing industry. 
Length: 8480 words
Creation-Date:  2012
Revision-Date:   2012
File-URL: https://www.iep.ru/files/RePEc/gai/wpaper/0013Knobel.pdf
File-Format: Application/pdf
File-Function: Revised version, 2012
Classification-JEL:  C23, F12, F14, O14
Keywords: : import  volumes,  services,  trade  liberalization,  gravity  model,  panel  data,  labor 
productivity 
Handle: RePEc:gai:wpaper:0013