Factors Affecting the Cost of Service Trade: Empirical Evidence from China and the European Union
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Date
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Publisher
Technická Univerzita v Liberci
Technical university of Liberec, Czech Republic
Technical university of Liberec, Czech Republic
Abstract
This study examines the factors affecting the cost of service trade between China and the countries of the EU. The costs between China and EU member states from 2005 to 2017 are measured using the improved gravity model. On the basis of relevant theories, the influencing factors system of service trade cost is constructed, and a dynamic panel model is used to conduct empirical analysis. The empirical results can be summarized into four aspects. First, the costs of service trade between China and EU member states has shown a general trend of gradual decline and there is still room for further decline. Second, the costs of trade in services between China and developed EU countries are lower, while those between China and undeveloped EU countries are higher. Third, service restriction, economic development levels and infrastructure have a greater impact on the cost of bilateral trade in services. Lastly, there are differences in influencing factors of service trade cost among countries with different levels of economic development.
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Subject(s)
service trade, trade cost, influencing factors, panel data
Citation
ISSN
1212-3609