Skip to main content

Macroeconomic Effects of the Services Directive

  • Chapter
Services Liberalisation in the Internal Market

Abstract

Making the Single Market more dynamic has been identified as one of the top priorities to improve the EU’s growth performance.1 In contrast to manufacturing industries, where the Single Market appears to be working quite well2, an assessment by the European Commission3 on the state of the internal market for services has identified a large gap between the vision of an integrated European economy and reality in service industries. There are still many impediments to the free movement of services in the EU. Particularly for small and medium-sized enterprises, the bulk of service providers, entry barriers in new EU markets are often prohibitive. With the Directive on Services in the Internal Market (SD) the European Parliament and the Council aim at removing the remaining barriers in this area to enable firms to exploit the full potential of cross-border services. This would be an important step forward in bringing the EU closer to its Lisbon targets.

1 Sapir et al. (2004).

2 Badinger (2007).

3 European Commission (2002).

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Philip Aghion/ Nicolas Bloom/ Richard Blundell/ Rachel Griffit/ Peter Howitt (2005), Competition and Innovation: An Inverted U-relationship, in: Quarterly Journal of Economics, 120 (2005) 2, 701–728.

    Article  Google Scholar 

  • Harald Badinger (2007), Has the EU’s Single Market Programme Fostered Competition? Testing for a Decrease in Markup Ratios in EU Industries, in: Oxford Bulletin of Economics and Statistics (forthcoming).

    Google Scholar 

  • Harald Badinger/ Fritz Breuss (2005), Trade and Productivity: An Industry Perspective, (= EI Working Paper 66), Vienna (Europainstitut, Wirtschaftsuniversität Wien) 2005.

    Google Scholar 

  • Harald Badinger/ Fritz Breuss (2006), Trade and Productivity: An Industry and Aggregate Perspective. Europainstitut, Wirtschaftsuniversität Wien, unpublished manuscript, February 2006.

    Google Scholar 

  • Jagdish N. Bhagwati (1965), On the equivalence of tariffs and quotas, in: Richard E. Baldwin et al., (Eds.), Trade, Growth and the Balance of Payments: Essays in Honor of Gottfied Haberler, Amsterdam (North-Holland) 1965, 53–67.

    Google Scholar 

  • Fritz Breuss/ Harald Badinger (2005), The European Single Market for Services in the Context of the Lisbon Agenda: Macro-economic Effects of the Services Directive, in: Deepening the Lisbon Agenda: Studies on Productivity, Services and Technologies (Lissabon vertiefen: Studien zu Produktivität, Dienstleistungen und Technologien), Federal Ministry of Economics and Labour of the Republic of Austria (BMWA), Vienna, January 2006, 79–108.

    Google Scholar 

  • Roland de Bruijn/ Henk Kox/ Arjan Lejour (2006), The trade-induced effects of the Services Directive and the country of origin principle (= CPB Document No 108), The Hague, February 2006.

    Google Scholar 

  • Copenhagen Economics (2005a), Economic Assessment of the Barriers to the Internal Market for Services. Final Report, 1 January 2005.

    Google Scholar 

  • Copenhagen Economics (2005b), The Economic Importance of the Country of Origin Principle in the Proposed Services Directive. Final Report, 17 November 2005.

    Google Scholar 

  • European Commission (2002), Report from the Commission to the Council and the European Parliament on the State of the Internal Market for Services, COM (2002) 441 final of 30 July 2002.

    Google Scholar 

  • European Commission (2004), Proposal for a Directive of the European Parliament and of the Council on Services in the Internal Market. COM (2004) 2 final/3 of 5 March 2004.

    Google Scholar 

  • European Commission (2006). Directive 2006/123/EC of the European Parliament and of the Council 12 December 2006 on services in the internal market, Official Journal No L 376/36 of 27 December 2006.

    Google Scholar 

  • Jeffrey A. Frankel/ David Romer (1999), Does Trade Cause Growth? in: American Economic Review, 89 (1999) No. 3, 279–399.

    Google Scholar 

  • Ting Gao (2004), FDI, openness and income, in: The Journal of International Trade & Economic Development, 13 (2004) No. 3, 305–323.

    Article  Google Scholar 

  • Groningen Growth and Development Centre (2005), 60-Industry Database, February 2005, available at http://www.ggdc.net.

    Google Scholar 

  • George M. M. Gelauff/ Arjan M. Lejour (2006), The new Lisbon Strategy: An estimation of the economic impact of reaching five Lisbon Targets. Report prepared for the Enterprise and Industry Directorate-General of the European Commission (Industrial Policy and Economic Reforms Paper No. 1), The Hague (CPB), January 2006.

    Google Scholar 

  • Stephen S. Golub (2003), Measures of Restrictions on Inward Foreign Direct Investment for OECD Countries (= OECD Economics Department Working Paper, No. 357), Paris, June 2003.

    Google Scholar 

  • Rachel Griffith/ Rupert Harrison (2004), The Link between Product Market Reform and Macro-Economic Performance (=European Economy, No. 209), European Commission Directorate-General for Economic and Financial Affairs, Economic Papers, Brussels, August 2004.

    Google Scholar 

  • Henk Kox/ Arjan Lejour/ Raymond Montizaan (2004/2005), The Free Movement of Services within the EU, ((=CPB Document No 69), The Hague, October 2004 (revised September 2005).

    Google Scholar 

  • James R. Markusen (2002), Multinational Firms and the Theory of International Trade, Cambridge/MA (MIT Press) 2002.

    Google Scholar 

  • Joaquim Oliveira Martins/ Stefano Scarpetta/ Dirk Pilat (1996), Mark-up Ratios in Manufacturing Industries. Estimates for 14 OECD Countries (= OECD Economics Department Working Paper, No. 162), Paris, April 1996.

    Google Scholar 

  • Gaëtan Nicodème/ Jacques-Bernard Sauner-Leroy (2004), Product Market Reforms and Productivity: A Review of the Theoretical and Empirical Literature on the Transmission Channels (=European Economy, No. 218), European Commission Directorate-General for Economic and Financial Affairs, Economic Papers, Brussels, December 2004.

    Google Scholar 

  • Giuseppe Nicoletti/ Stefano Scarpetta/ Olivier Boylaud (1999), Summary Indicators of Product Market Regulation with an Extension to Employment Protection Legislation. (=OECD Economics Department Working Paper, No. 226), Paris, December 1999.

    Google Scholar 

  • William Nordhaus (2005), The Sources of the Productivity Rebound and the Manufacturing Employment Puzzle (=NBER Working Paper, No. 11354), Washington/DC, May 2005.

    Google Scholar 

  • OECD (2003), Product Market Competition and Economic Performance. OECD Economic Outlook, No. 72, chapter 6.

    Google Scholar 

  • OECD (2005), Economic Surveys: Euro Area. Vol. 11, September 2005.

    Google Scholar 

  • Ronnie O'Toole (2005), The Services Directive: An Initial Estimate of the Economic Impact on Ireland, unpublished manuscript, Dublin, 28 February 2005.

    Google Scholar 

  • André Sapir/ Philip Aghion/ Giuseppe Bertola/ Martin Hellwig/ Jean Pisani-Ferry/ Dariusz Rosati/ José Viñals/ Helen Wallace (2004), An Agenda for a Growing Europe: The Sapir Report, Oxford (Oxford University Press (2004).

    Google Scholar 

  • UN (2002), Manual on Statistics of International Trade in Services, United Nations.

    Google Scholar 

  • Line Vogt (2005), The EU’s Single Market: At Your Service? (=OECD Economics Department Working Paper, No. 449), Paris, October 2005.

    Google Scholar 

Download references

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2008 Springer-Verlag Wien

About this chapter

Cite this chapter

Badinger, H., Breuss, F., Schuster, P., Sellner, R. (2008). Macroeconomic Effects of the Services Directive. In: Breuss, F., Fink, G., Griller, S. (eds) Services Liberalisation in the Internal Market. Schriftenreihe der Österreichischen Gesellschaft für Europaforschung (ECSA Austria)/European Community Studies Association of Austria Publication Series, vol 6. Springer, Vienna. https://doi.org/10.1007/978-3-211-69388-9_3

Download citation

  • DOI: https://doi.org/10.1007/978-3-211-69388-9_3

  • Publisher Name: Springer, Vienna

  • Print ISBN: 978-3-211-22401-4

  • Online ISBN: 978-3-211-69388-9

Publish with us

Policies and ethics