Most barriers to trade in services stem from regulatory measures. This study assesses the degree of regulatory restrictiveness affecting trade in services across Latin America and the Caribbean and the degree of disparities in these measures. It then analyzes the impact of both the level of restrictions and the extent of regulatory divergence on service trade flows. Latin America emerges as a region with a mixed level of service trade restrictions and with a significant level of regulatory disparity across the individual countries. The econometric results indicate that higher regulatory barriers and greater regulatory disparities are both negatively associated with trade in services. The findings suggest that countries in the region could enhance service trade by reducing regulatory restrictions and harmonizing regulatory frameworks. JEL Classification Codes: F13; F14; F15
Juan S. Blyde (Thu,) studied this question.