Author: Aaditya Mattoo
Publisher: World Bank Publications
ISBN:
Category : Desarrollo economico
Languages : en
Pages : 40
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Book Description
Countries that fully liberalize their telecommunications and financial services sectors may be able to expect economic growth rates up to 1.5 percentage point higher than rates in other countries.
Author: Aaditya Mattoo
Publisher:
ISBN:
Category :
Languages : en
Pages : 36
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Book Description
Countries that fully liberalize their telecommunications and financial services sectors may be able to expect economic growth rates up to 1.5 percentage points higher than rates in other countries. Mattoo, Rathindran, and Subramanian explain how the output growth effect from liberalizing the service sectors differs from the effect from liberalizing trade in goods. They also suggest using a policy-based rather than outcome-based measure of the openness of a country's services regime. They construct such openness measures for two key service sectors' basic telecommunications and financial services.Finally, the authors provide some econometric evidence - relatively strong for the financial sector and less strong, but nevertheless statistically significant, for the telecommunications sector - that openness in services influences long-run growth performance. Their estimates suggest that growth rates in countries with fully open telecommunications and financial services sectors are up to 1.5 percentage points higher than those in other countries.This paper - a product of Trade, Development Research Group - is part of a larger effort in the group to assess the implications of liberalizing trade in services.
Author: OECD
Publisher: OECD Publishing
ISBN: 9264100431
Category :
Languages : en
Pages : 168
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Book Description
Amongst other issues, the papers in this volume explore fundamental issues for empirical research on trade in services. It highlights the specific data requirements and conceptual challenges for modelling liberalisation of services.
Author: Denise Eby Konan
Publisher: World Bank Publications
ISBN:
Category : Free trade
Languages : en
Pages : 31
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Book Description
The authors consider how service liberalization differs from goods liberalization in terms of welfare, the level and composition of output, and factor prices within a developing economy, in this case Tunisia. Despite recent movements toward liberalization, Tunisian service sectors remain largely closed to foreign participation and are provided at high cost relative to many developing nations. The authors develop a computable general equilibrium (CGE) model of the Tunisian economy with multiple products and services and three trading partners. They model goods liberalization as the unilateral removal of product tariffs. Restraints on services trade involve both restrictions on cross-border supply (mode 1 in the GATS) and on foreign ownership through foreign direct investment (mode 3 in the GATS). The former are modeled as tariff-equivalent price wedges while the latter are comprised of both monopoly-rent distortions (arising from imperfect competition among domestic producers) and inefficiency costs (arising from a failure of domestic service providers to adopt least-cost practices). They find that goods-trade liberalization yields a gain in aggregate welfare and reorients production toward sectors of benchmark comparative advantage. However, a reduction of services barriers in a way that permits greater competition through foreign direct investment generates larger welfare gains. Service liberalization also requires lower adjustment costs, measured in terms of sectoral movement of workers, than does goods-trade liberalization. And it tends to increase economic activity in all sectors and raise the real returns to both capital and labor. The overall welfare gains of comprehensive service liberalization amount to more than 5 percent of initial consumption. The bulk of these gains come from opening markets for finance, business services, and telecommunications. Because these are key inputs into all sectors of the economy, their liberalization cuts costs and drives larger efficiency gains overall. The results point to the potential importance of deregulating services provision for economic development.
Author: Dan Ciuriak
Publisher:
ISBN:
Category :
Languages : en
Pages : 35
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Book Description
It has long been established in theory that uncertainty impacts on firm behaviour. However, the empirical basis for quantifying the uncertainty-reducing effects of trade agreements has not been firmly established. In this paper, we develop estimates of the effect of reducing uncertainty regarding market access on cross-border services trade by making commitments that are bound under a trade agreement. Specifically, we identify the effect of services trade restrictions on cross-border services trade, as measured by the OECD's Services Trade Restrictiveness Index (STRI), and the separate effect of “water” in countries' WTO bindings, as assessed by the difference between their commitments under the General Agreement on Trade in Services and their applied level of market access, as captured by their STRI scores. Using a gravity model, we find that services trade responds positively but inelastically to reductions in services trade barriers, as measured by the STRI, and that the response to actual restrictions is about twice as strong as the response to comparable reductions in uncertainty, as measured by water. Responses are highly heterogeneous across services sectors. We suggest how these results can be used provisionally to quantitatively assess the impact of trade agreements in CGE modelling frameworks, taking into account not only actual liberalization of market access terms and conditions, but also the extent of binding of those commitments.
Author: Denise Eby Konan
Publisher:
ISBN:
Category :
Languages : en
Pages : 31
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Book Description
Konan and Maskus consider how service liberalization differs from goods liberalization in terms of welfare, the level and composition of output, and factor prices within a developing economy, in this case Tunisia. Despite recent movements toward liberalization, Tunisian service sectors remain largely closed to foreign participation and are provided at high cost relative to many developing nations. The authors develop a computable general equilibrium (CGE) model of the Tunisian economy with multiple products and services and three trading partners. They model goods liberalization as the unilateral removal of product tariffs. Restraints on services trade involve both restrictions on cross-border supply (mode 1 in the GATS) and on foreign ownership through foreign direct investment (mode 3 in the GATS). The former are modeled as tariff-equivalent price wedges while the latter are comprised of both monopoly-rent distortions (arising from imperfect competition among domestic producers) and inefficiency costs (arising from a failure of domestic service providers to adopt least-cost practices). They find that goods-trade liberalization yields a gain in aggregate welfare and reorients production toward sectors of benchmark comparative advantage. However, a reduction of services barriers in a way that permits greater competition through foreign direct investment generates larger welfare gains. Service liberalization also requires lower adjustment costs, measured in terms of sectoral movement of workers, than does goods-trade liberalization. And it tends to increase economic activity in all sectors and raise the real returns to both capital and labor. The overall welfare gains of comprehensive service liberalization amount to more than 5 percent of initial consumption. The bulk of these gains come from opening markets for finance, business services, and telecommunications. Because these are key inputs into all sectors of the economy, their liberalization cuts costs and drives larger efficiency gains overall. The results point to the potential importance of deregulating services provision for economic development.This paper - product of the Trade, Development Research Group - is part of a larger effort in the department to measure the benefits of services trade.
Author: Australia. Department of Foreign Affairs and Trade
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Author:
Publisher:
ISBN:
Category : Free trade
Languages : en
Pages : 74
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Book Description
Author: John Whalley
Publisher:
ISBN:
Category : Commerce
Languages : en
Pages : 59
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Book Description
This paper discusses the potential impacts of services trade liberalization on developing countries and reviews existing quantitative studies. Its purpose is to distill themes from current literature rather than to advocate specific policy changes. The picture emerging is one of valiant attempts to quantify in the presence of formidable analytical and data problems yielding only a clouded image of likely impacts on trade, consumption, production, and welfare.
Author: Orvill Adams
Publisher:
ISBN:
Category : Medical care
Languages : en
Pages : 24
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Book Description
