CGE Modeling of Market Access in Services

This paper examines how the applied multi-sector computable general equilibrium (CGE) literature has moved into quantication of the impacts of greater market access for services. This includes discussion of multi-sector linkages to the service sector, as well both measuring barriers to trade and investment (generally with a mix of firm surveys, price comparisons, and econometrics), and how changes in these barriers, however measured, have been implemented in the CGE literature. Three challenges are highlighted. The first is identification of how trade in services takes place and how market access is therefore affected by policy. The second is to find data sufficiently robust for modeling purposes. The third, linked to the data problem, is to quantify the barriers to be examined. Significant progress has been made in modeling foreign direct investment and linking this to productivity, which turns out to be important. The paper also provides an example of modeling productivity linkages to openness and domestic regulation, with an applied CGE model of Italy. This illustrates cross-sector linkages and the integration of economic data and policy measures to define service sector experiments. Priorities for future research include better modeling of market structure, the linkages between sectors and the complementarities between different modes of supplying services.

Bibliographic Details

Main Authors:	Christen, Elisabeth, Francois, Joseph, Hoekman, Bernard
Format:	Policy Research Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2012-06
Subjects:	AGREEMENT ON TRADE, ARBITRAGE, BALANCE OF PAYMENTS, BARRIER, BARRIERS TO ENTRY, BENCHMARK, BENCHMARKING, BILATERAL TRADE, BILATERAL TRADE DATA, BORDER TRADE, BUSINESS PRACTICES, CARTEL, CENTRAL PLANNING, COMMERCE, COMPARATIVE ADVANTAGE, COMPETITIVENESS, COMPETITIVENESS OF FIRMS, CONFIDENTIALITY, CONSUMER DEMAND, CONSUMER PRICES, CONSUMERS, CONTESTABILITY, CORE BUSINESSES, COST STRUCTURE, CROSS-BORDER SUPPLY, CUSTOMS UNION, DELIVERY OF SERVICES, DEMAND FUNCTION, DEMOGRAPHIC, DEVELOPING COUNTRIES, DEVELOPMENT POLICY, DIRECT VALUE, DOMESTIC DEMAND, DOMESTIC PRICE, DOMESTIC REGULATION, DOMESTIC REGULATORY POLICIES, DUOPOLY, ECONOMETRIC ANALYSIS, ECONOMETRIC ESTIMATES, ECONOMETRICS, ECONOMIC GEOGRAPHY, ECONOMIC IMPORTANCE OF SERVICES, ECONOMIC STRUCTURE, ELASTICITY, ELASTICITY OF SUBSTITUTION, ENFORCEMENT OF CONTRACTS, EXPORT PERFORMANCE, EXPORT POSITIONS, EXPORT SECTORS, EXPORT STRUCTURE, EXPORT VALUE, EXPORTS, FACTOR ENDOWMENTS, FACTORS OF PRODUCTION, FINAL GOODS, FINANCIAL MARKETS, FINANCIAL SERVICES, FIXED COSTS, FOREIGN AFFILIATES, FOREIGN DIRECT INVESTMENT, FOREIGN FIRMS, FOREIGN OWNERSHIP, FOREIGN PARTICIPATION, FOREIGN PROVIDERS, FOREIGN SUPPLIERS, FULL LIBERALIZATION, FUTURE RESEARCH, GATS, GDP, GENERAL EQUILIBRIUM MODELING, GRAVITY MODEL, GRAVITY MODELS, GROSS EXPORTS, GROSS NATIONAL PRODUCT, GROSS OUTPUT, GROSS VALUE, GROWTH POTENTIAL, GROWTH RATE, GROWTH RATES, HOME COUNTRY, HUMAN CAPITAL, IMPERFECT COMPETITION, IMPORT COMPETITION, IMPORTANCE OF SERVICES, IMPROVED MARKET ACCESS, INCOME, INCREASING RETURNS, INEFFICIENCY, INFORMATION SERVICES, INPUT PRICES, INSURANCE, INTANGIBLE, INTERMEDIATE INPUTS, INTERNATIONAL COMPETITION, INTERNATIONAL COMPETITIVENESS, INTERNATIONAL MARKETS, INTERNATIONAL TRADE, INTERNATIONAL TRANSPORT, INVENTORY, INVESTMENT RESTRICTIONS, LIBERALIZATION OF TRADE, LIBERALIZATION OF TRADE IN GOODS, LIBERALIZING TRADE, M1, MARGINAL COST, MARGINAL COSTS, MARKET ACCESS, MARKET ACCESS NEGOTIATIONS, MARKET POWER, MARKET STRUCTURE, MARKET STRUCTURES, MARKETPLACE, MERCHANDISE, MERCHANDISE TRADE, MERCHANDISE TRADE FLOWS, MIDDLE INCOME COUNTRIES, MODES OF SUPPLY, MONOPOLISTIC COMPETITION, MONOPOLY, MULTILATERAL LIBERALIZATION, MULTILATERAL RULES, MULTILATERAL TRADE, MULTINATIONAL ENTERPRISES, MULTINATIONAL FIRMS, MULTIPLIERS, OLIGOPOLY, OPEN MARKETS, OPENNESS, OUTPUTS, OUTSOURCING, PATTERN OF TRADE, POLITICAL ECONOMY, POSITIVE EFFECTS, PREFERENTIAL TRADE, PREFERENTIAL TRADE AGREEMENT, PREFERENTIAL TRADE AGREEMENTS, PRICE COMPARISONS, PRICE CONTROL, PRICE CONTROLS, PRICE INDEXES, PRICE MARGINS, PRICE REGULATION, PRIMARY FACTORS, PRODUCT MARKET, PRODUCTION FUNCTION, PRODUCTIVITY, PRODUCTIVITY GROWTH, REAL INCOME, RED TAPE, REDUCTION IN TARIFFS, REGIONAL INTEGRATION, REGIONAL TRADE, REGIONAL TRADE AGREEMENTS, REGRESSION ANALYSIS, REGULATORY BARRIERS, REGULATORY ENVIRONMENT, REGULATORY POLICIES, REGULATORY POLICY, REGULATORY REGIME, REGULATORY REGIMES, REGULATORY REQUIREMENTS, REGULATORY RESTRICTIONS, REPUTATION, RETAIL, SALES, SAVINGS, SERVICE MARKETS, SERVICE SECTOR, SERVICE SECTORS, SERVICES MARKETS, SERVICES SECTORS, SERVICES TAKES, SERVICES TRADE, SHARE OF CAPITAL, SINGLE MARKET, SPECIALIZATION, SPREAD, STOCKS, SUBSTITUTE, SUBSTITUTES, SUPPLIER, SUPPLIERS, SURPLUS, TARIFF BARRIERS, TARIFF EQUIVALENTS, TAX, TELECOMMUNICATIONS, TERMS OF TRADE, TERMS OF TRADE EFFECTS, TRADE AGREEMENT, TRADE AGREEMENTS, TRADE BARRIERS, TRADE COSTS, TRADE DATA, TRADE DIVERSION, TRADE EXPANSION, TRADE FLOWS, TRADE IN SERVICES, TRADE LIBERALIZATION, TRADE MODELS, TRADE NEGOTIATIONS, TRADE REFORMS, TRADE RESTRICTIONS, TRADE TAX, TRADE VOLUMES, TRANSACTION COSTS, TRANSACTIONS COSTS, URUGUAY ROUND, VALUE ADDED, VALUE OF OUTPUT, VALUE OF TRADE, WAGES, WELFARE GAINS, WELFARE IMPACTS, WELFARE LOSS, WHOLESALE TRADE, WORLD TRADE, WTO,
Online Access:	http://documents.worldbank.org/curated/en/2012/06/16428017/cge-modeling-market-access-services http://hdl.handle.net/10986/9324
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