The political economy of services trade liberalization: a case for international regulatory cooperation?
AbstractLittle progress has been made since the creation of the WTO in expanding and deepening the coverage of services liberalization commitments. This paper identifies and discusses five hypotheses that may explain the absence of dynamism: (i) technological changes allow ever more services to be traded cross-border unaffected by policy; (ii) strong incentives to pursue liberalization on an autonomous basis (unilaterally); (iii) perceptions that bilateral or regional cooperation are a good substitute for the WTO; (iv) standard political economy factors such as adjustment costs and resistance by incumbents to erosion of rents; and (v) concerns that the WTO will affect the ability of regulators to enforce national norms. We argue that all of these explanations play a role, and that some of these factors significantly impede the scope for reciprocal exchanges of âconcessionsââthe engine of WTO negotiations.
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Bibliographic InfoPaper provided by ULB -- Universite Libre de Bruxelles in its series ULB Institutional Repository with number 2013/8098.
Date of creation: 2007
Date of revision:
Publication status: Published in: Oxford Review of Economic Policy (2007) v.23,p.367-391
Other versions of this item:
- Bernard Hoekman & Aaditya Mattoo & André Sapir, 2007. "The political economy of services trade liberalization: a case for international regulatory cooperation?," Oxford Review of Economic Policy, Oxford University Press, vol. 23(3), pages 367-391, Autumn.
- Hoekman, Bernard & Mattoo, Aaditya & Sapir, André, 2007. "The Political Economy of Services Trade Liberalization: A Case for International Regulatory Cooperation?," CEPR Discussion Papers 6457, C.E.P.R. Discussion Papers.
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
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