## Exports in a Tariff-Free Environment: What Structural Reforms Matter? Evidence from the European Union Single Market

_IMF Working Papers, August 3, 2015_

## Source details

**Canonical URL:** [Exports in a Tariff-Free Environment: What Structural Reforms Matter? Evidence from the European Union Single Market](https://www.imf.org/en/publications/wp/issues/2016/12/31/exports-in-a-tariff-free-environment-what-structural-reforms-matter-evidence-from-the-43164)

## Other formats

- [Markdown version](/en/publications/wp/issues/2016/12/31/exports-in-a-tariff-free-environment-what-structural-reforms-matter-evidence-from-the-43164/index.md)
- [Structured JSON version](/en/publications/wp/issues/2016/12/31/exports-in-a-tariff-free-environment-what-structural-reforms-matter-evidence-from-the-43164/index.json)
- [Bundle manifest](/en/publications/wp/issues/2016/12/31/exports-in-a-tariff-free-environment-what-structural-reforms-matter-evidence-from-the-43164/bundle-manifest.json)

## Bibliographic details
- Authors: Jesmin Rahman, Ara Stepanyan, Jessie Yang, Li Zeng
- Published: August 3, 2015
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513552170.001

---

### Summary findings
- Investigation focuses on export performance of new member states in the European Union single market, which serves as a natural control for a barrier-free environment.
- Structural reforms are highlighted as key drivers of export performance, particularly:
  - higher education,
  - skills upgrade,
  - wage structure’s ability to provide incentives to work,
  - foreign investment environment.
- Establishing links with supply chains is important and depends additionally on:
  - better institutions,
  - better infrastructure.
- New member states are at varying levels of quality and integration, implying the need for country-specific policy priorities.
- Services trade in the EU market faces significant non-tariff barriers even after the implementation of the Services Directive, indicating considerable room for growth given comparative advantages of some new member states.

### Policy implications and recommendations
- Prioritize structural reforms in:
  - higher education systems to improve human capital,
  - skills upgrading to match export sector needs,
  - wage-setting mechanisms to strengthen work incentives,
  - improving the foreign investment environment to attract FDI.
- Strengthen institutions and infrastructure to facilitate integration into supply chains.
- Design country-specific reform agendas reflecting differing levels of export quality and integration across new member states.
- Address non-tariff barriers in services to unlock service export potential, acknowledging remaining impediments despite the Services Directive.

### Additional analysis highlights
- The single market environment provides a controlled context to isolate the role of structural reforms on exports in largely tariff-free settings.
- Comparative advantage in services for some new member states suggests targeting services-sector reforms could yield export gains.

---

## Content in this bundle

- **Wp15187**
  - [Wp15187 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2015/_wp15187.pdf.md){rel="alternate" type="text/markdown"}
  - [Wp15187 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2015/_wp15187.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/exports-in-a-tariff-free-environment-what-structural-reforms-matter-evidence-from-the-43164_