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The Economic Effects of Removing Barriers to Trade in Telecommunications

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  • George Verikios
  • Xiao-guang Zhang

Abstract

This paper quantifies the impact on the economies of the world of complete liberalisation of trade in a key services sector, telecommunications, using a global general equilibrium model. Barriers to trade in telecommunications are highest in developing regions and lowest in developed regions. The paper uses new estimates of these barriers for telecommunications. The results indicate that completely liberalising trade in telecommunications would benefit the world as a whole in terms of increased production by 0.1 per cent. Although the distribution of gains among regions is not even, most regions are projected to gain from liberalising trade in telecommunications. In general, the regions with the highest barriers benefit most. The analysis demonstrates that commercial presence of foreign firms via foreign direct investment is an important mode of delivering telecommunications. Copyright 2004 Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal The World Economy.

Volume (Year): 27 (2004)
Issue (Month): 3 (03)
Pages: 435-458

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Handle: RePEc:bla:worlde:v:27:y:2004:i:3:p:435-458

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0378-5920

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Cited by:
  1. Ramkishen Rajan & Graham Bird, 2002. "Will Asian Economies Gain from Liberalizing Trade in Services?," Centre for International Economic Studies Working Papers 2002-22, University of Adelaide, Centre for International Economic Studies.
  2. Hiro Lee & Dominique van der Mensbrugghe, 2001. "A General Equilibrium Analysis of the Interplay between Foreign Direct Investment and Trade Adjustments," Discussion Paper Series 119, Research Institute for Economics & Business Administration, Kobe University, revised Jul 2001.
  3. George Verikios & Xiao-guang Zhang, 2014. "Structural change and income distribution: the case of Australian telecommunications," Centre of Policy Studies/IMPACT Centre Working Papers g-240, Victoria University, Centre of Policy Studies/IMPACT Centre.

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