Preliminary and Incomplete Abstract

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1 The sample of countries is restricted to the ones in Baier and Bergstrand (2007).

2 In this respect, the first edition of the Manual on Statistics of International Trade in Services was issued in 2002 with the aim of provide a coherent conceptual framework given the need for statistics both to guide trade agreements’ negotiations and to support implementation of that agreements. Available at:

3 In the appendix there are similar graphs as the ones presented in the first section of this work, but representing the total flows of a country depending of its remoteness. With the Remoteness calculated according to the following formula:

4 The formula to obtain this distance variable was developed by Head and Mayer (2002):

5 Mode 1: Cross border supply; Mode 2: Consumption abroad; Mode 3: Commercial presence (FDI); Mode 4: Presence of a natural person.

6 Emigration has been analyzed based just on 2005 data, since there is data available just for one year (updated in 2007, but using data for previous years).


8 The top 5 partners of Canada, China, France and Chile and their shares based on the data used in this work are reported in Table A14 in the Appendix.

9 These shares have been computed considering the sample of 97 countries analyzed in this work. However, since we are covering a large share of the total world economy, it is expected that the main conclusions from this analysis can be similar to the ones considering all the countries.

10 The composite distance measure described in this section considers the values of the independent variables as in 2011. The only variables that are time variant are the regional bloc or trade agreement variable and the ratio of the pc income.

Copyright © 2013 Pankaj Ghemawat
*Not to be copied, circulated or cited without written permission from Pankaj Ghemawat.
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