Economic benefits of an Integrated European Market for Services
AbstractA Single Market for Services in the European Union is not yet a reality. The European Commission launched proposals that would remove some negative trade impacts caused by national regulation differences. We apply a general equilibrium model (WorldScan) to assess what economic benefits the proposed Services Directive may have throughout the European Union. The simulations show that European GDP and consumption could rise substantially. Most of the new accession countries will experience larger than average gains, because their services trade is now still hampered by relatively severe regulatory barriers. The Commission proposals cause a shift in industry specialisation. Some of the original EU Member States increase their relative specialisation in commercial services due to the more open borders. The new accession countries, however, reallocate more resources to their manufacturing activity where they have the strongest comparative advantage. We also assessed the effects of a policy variant that corresponds with the amended 2006 Services Directive without the 'country of origin' principle. Economic benefits are substantially smaller, implicitly showing the economic benefits of mutual recognition of regulatory standards.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Policy Modeling.
Volume (Year): 30 (2008)
Issue (Month): 2 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/505735
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Roland de Bruijn, 2006. "Scale Economies and Imperfect Competition in WorldScan," CPB Memorandum 140, CPB Netherlands Bureau for Economic Policy Analysis.
- Arjan Lejour & Paul Veenendaal & Gerard Verweij & Nico van Leeuwen, 2006. "Worldscan; a model for international economic policy analysis," CPB Document 111, CPB Netherlands Bureau for Economic Policy Analysis.
- Ruud de Mooij & Paul Tang, 2003. "Four futures of Europe," CPB Special Publication 49, CPB Netherlands Bureau for Economic Policy Analysis.
- André Sapir & Philippe Aghion & Giuseppe Bertola & Martin Hellwig & Jean Pisani-Ferry & Bernard Lange & José Viñals & Helen Wallace & Marco Buti & Mario Nava & Peter Smith, 2004.
"An agenda for a growing Europe: the Sapir report,"
ULB Institutional Repository
2013/8070, ULB -- Universite Libre de Bruxelles.
- Henk Kox & Arjan Lejour, 2005. "Regulatory heterogeneity as obstacle for international services trade," CPB Discussion Paper 49, CPB Netherlands Bureau for Economic Policy Analysis.
- Adams, Philip D., 2005. "Interpretation of results from CGE models such as GTAP," Journal of Policy Modeling, Elsevier, vol. 27(8), pages 941-959, November.
- Bajo-Rubio, Oscar & Gomez-Plana, Antonio G., 2005.
"Simulating the effects of the European Single Market: A CGE analysis for Spain,"
Journal of Policy Modeling,
Elsevier, vol. 27(6), pages 689-709, September.
- Oscar Bajo & Antonio Gómez, 2005. "Simulating The Effects Of The European Single Market: A Cge Analysis For Spain," Documentos de Trabajo - Lan Gaiak Departamento de EconomÃa - Universidad PÃºblica de Navarra 0503, Departamento de Economía - Universidad Pública de Navarra.
- Oscar Bajo-Rubio & Antonio G. Gómez-Plana, . "Simulating the effects of the European single market: a CGE analysis for Spain," Studies on the Spanish Economy 208, FEDEA.
- Arjan Lejour & Henk Kox & Roland de Bruijn, 2006. "The trade-induced effects of the Services Directive and the country of origin principle," CPB Document 108, CPB Netherlands Bureau for Economic Policy Analysis.
- Samitas, Aristeidis G. & Kenourgios, Dimitris F., 2005. "Entrepreneurship, small and medium size business markets and European economic integration," Journal of Policy Modeling, Elsevier, vol. 27(3), pages 363-374, April.
- Hildegunn Kyvik Nordås & Enrico Pinali & Massimo Geloso Grosso, 2006. "Logistics and Time as a Trade Barrier," OECD Trade Policy Papers 35, OECD Publishing.
- Giuseppe Nicoletti & Steve Golub & Dana Hajkova & Daniel Mirza & Kwang-Yeol Yoo, 2003. "Policies and International Integration: Influences on Trade and Foreign Direct Investment," OECD Economics Department Working Papers 359, OECD Publishing.
- Arjan Lejour, 2003. "Quantifying four scenarios for Europe," CPB Document 38, CPB Netherlands Bureau for Economic Policy Analysis.
- Henk Kox & Arjan Lejour, 2006. "The Effects of the Services Directive on Intra-eu Trade and fdi," Revue économique, Presses de Sciences-Po, vol. 57(4), pages 747-769.
- Joseph F. Francois & Bernard Hoekman, 2009.
"Services Trade and Policy,"
Economics working papers
2009-03, Department of Economics, Johannes Kepler University Linz, Austria.
- Winchester, Niven, 2009. "Is there a dirty little secret? Non-tariff barriers and the gains from trade," Journal of Policy Modeling, Elsevier, vol. 31(6), pages 819-834, November.
- Toulemonde, Eric, 2013. "A welfare analysis of the principle of mutual recognition," European Economic Review, Elsevier, vol. 60(C), pages 1-16.
- Clemente, Jesús & Pueyo, Fernando & Sanz, Fernando, 2009. "Market potential, European Union and growth," Journal of Policy Modeling, Elsevier, vol. 31(5), pages 719-730, September.
- Arjan Lejour & Hugo Rojas-Romagosa & Verweij. G., 2007.
"Opening services markets within Europe; modelling foreign establishments in a CGE framework,"
CPB Discussion Paper
80, CPB Netherlands Bureau for Economic Policy Analysis.
- Lejour, Arjan & Rojas-Romagosa, Hugo & Verweij, Gerard, 2008. "Opening services markets within Europe: Modelling foreign establishments in a CGE framework," Economic Modelling, Elsevier, vol. 25(5), pages 1022-1039, September.
- Bas Straathof & Gert Jan Linders & Arjan Lejour & Jan MÃ¶hlmann, 2008. "The internal market and the Dutch economy: implications for trade and economic growth," CPB Document 168, CPB Netherlands Bureau for Economic Policy Analysis.
- Bianka Dettmer, 2012. "The European Union's service directive: Contrasting ex ante estimates with empirical evidence," Jena Economic Research Papers 2012-019, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- Hudson, John & Orviska, Marta, 2013. "Firms’ adoption of international standards: One size fits all?," Journal of Policy Modeling, Elsevier, vol. 35(2), pages 289-306.
- Kitou, Elisavet & Philippidis, George, 2010. "An EU-Canada bilateral trade agreement: A DefraTAP application," 84th Annual Conference, March 29-31, 2010, Edinburgh, Scotland 91679, Agricultural Economics Society.
- Bianka Dettmer, 2012. "Business services outsourcing and economic growth: Evidence from a dynamic panel data approach," Jena Economic Research Papers 2012-049, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- Productivity Commission, 2009. "Review of Mutual Recognition Schemes," Research Reports, Productivity Commission, Government of Australia, number 32.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.