Deepening the EU’s Single Market for Services
IMF Working Papers, December 6, 2019
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- Deepening the EU’s Single Market for Services
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Bibliographic details
- Authors: Christian H Ebeke, Jan-Martin Frie, Louise Rabier
- Published: December 6, 2019
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513520681.001
Overview
- Title: Deepening the EU’s Single Market for Services
- Authors: Christian H Ebeke, Jan-Martin Frie, Louise Rabier
- Date: December 6, 2019
- Short summary: The services sector is increasingly important for the euro area economy, but productivity growth in the sector has stalled over the past two decades. Remaining barriers to cross-border trade in services within the EU Single Market contribute to this weak performance. Empirical analysis links slow progress in removing these barriers to political economy factors such as weak government support in parliaments, low government efficiency and high markups. Policy suggestions include combining incentives (financial support, technical assistance, improved communication on barriers) with more effective enforcement.
Key findings
- The services sector's importance to the euro area economy has increased, while productivity growth in the sector has stalled over the past two decades.
- Remaining barriers to cross-border trade in services within the EU Single Market contribute to weak productivity performance.
- Empirical analysis associates slow progress in removing these barriers with political economy factors:
- weak government support in parliaments
- low government efficiency
- high markups
Policy recommendations
- Combine incentives and enforcement to remove cross-border restrictions on services trade, specifically:
- financial support
- technical assistance
- improved communication on barriers
- more effective enforcement
Empirical approach and analytical emphasis
- Focus on cross-border trade restrictions within the EU Single Market and their role in services-sector productivity stagnation.
- Emphasis on political economy determinants of reform progress (parliamentary support, government efficiency, markups).
- Suggests targeted incentives plus enforcement as a dual strategy to address entrenched barriers.
Subjects and keywords
- Subject: Economic sectors, International trade, Legal support in revenue administration, Production, Productivity, Revenue administration, Services sector, Trade in services, Trade liberalization
- Keywords: EU KLEMS, EU Services Directive, EU work force, euro area services sector, Global, government, Legal support in revenue administration, Productivity, service trade restrictiveness, Services sector, STRI EU, Trade in services, Trade liberalization, WP
Source: IMF Working Paper "Deepening the EU’s Single Market for Services" (December 6, 2019) by Christian H Ebeke, Jan-Martin Frie, and Louise Rabier. DOI: https://doi.org/10.5089/9781513520681.001
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- Working Paper