Publication

This paper discusses whether developing countries forgo chances in world manufactured markets by protecting intermediate services against market entry of new suppliers. By scanning the empirical literature on effective rates of protection (ERP), the evidence is supportive. The author argues, however, that this effect is primarily caused indirectly via the expansion of the service sector itself and the positive consequences for more and better services for the manufacturing sector. He concludes that protection rates of services in individual EU countries will converge.