. Service trade, however, like goods trade, is subject to strong distance effects, implying that the remote supply of services … remains limited. We investigate this proposition by deriving a gravity-like equation for service trade and estimating it for a … large sample of countries and different categories of service trade. We find that distance costs are high but are declining …

. Service trade, however, like goods trade, is subject to strong distance effects, implying that the remote supply of services … remains limited. We investigate this proposition by deriving a gravity-like equation for service trade and estimating it for a … large sample of countries and different categories of service trade. We find that distance costs are high but are declining …