Trade barriers in services do not take the form of import tariffs, but rather of a complex variety of quantitative restrictions, prohibitions and regulations. This paper attempts to measure tariff equivalents in 7 traded services for 51 countries by using a gravity model. It is shown that the gravity equation has great explanatory power not only in illustrating trade patterns in merchandise but also in services. Unlike previous studies, this paper shows that estimates of tariff equivalents are not systematically associated with a country's level of development. The EU countries have more open regimes relative to other industrialized countries.

Executive Summary

I. Introduction

II. The Gravity Equation

III. The Empirical Model

IV. Estimates for Trariff Equivalents

V. Conclusion

References

Appendix