The Domestic Market in the EU – Potentials for an Intensified Service Trade

Tasks

The study will be conducted within a framework agreement with the Chamber of Commerce and Industry for Munich and Upper Bavaria. This is a major, ongoing project involving independent, scientifically based economic advisory work. Details

The aim of the study is to examine the economic impact of the removal of non-tariff trade barriers in the services sector within the EU. The focus is on the untapped potential of trade in services in the EU, the extent of existing trade restrictions and the impact of a reduction in trade costs on general prosperity and value added in various sectors. In addition, the most important trade barriers for companies in the EU are identified and possible strategies for overcoming them are outlined.

Methods

The study is divided into three parts:

• First, the size and development of trade in services in the EU are analyzed.
• In the main part, the effects of reducing non-tariff trade barriers in the services sector by 10% and 25% are simulated with the help of the ifo trade model. The results are presented for Germany and the EU member states.
• In the final section, the most important trade barriers are identified in cooperation with the Chamber of Industry and Commerce and expert knowledge.

Data and Other Sources

The project uses data from Eurostat, OECD and ITPD-E for the descriptive analysis. The modeling is based on data from the GTAP10 database. The most important trade barriers are identified on the basis of the IHK surveys, among other things.