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Protection and trade in services : a survey

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  • Hoekman, Bernard
  • Primo Braga, Carlos A.

Abstract

Until recently, trade in services was mostly ignored by iinternational economists, reflecting a perception that services were nontradable. This has never been true. Transportation and travel, for example, have always been important economic activities. In 1995, services trade climbed to a 20-percent share of global trade -no doubt an underestimate, as the most dynamic component of trade in services is telecommunications, which is not being properly captured in conventional balance of payment statistics. The authors survey the literature on trade in services, focusing on thepolicies used to restrict such trade, the gains from liberalization, and the institutional mechanisms adopted in pursuit of liberalization. They argue that technological progress (which makes services more tradable) and iinternational trade negotiations are likely to keep liberalization of trade in services a high-profile policy issue. They suggest that research focus on developing better estimates of the welfare costs of protectionism in the service sector. This will require quantifying barriers to the international exchange of services.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 1747.

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Date of creation: 30 Apr 1997
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Handle: RePEc:wbk:wbrwps:1747

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Keywords: Environmental Economics&Policies; Health Economics&Finance; Payment Systems&Infrastructure; Economic Theory&Research; Decentralization; Health Economics&Finance; ICT Policy and Strategies; Knowledge Economy; Environmental Economics&Policies; Economic Theory&Research;

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  1. Bennathan, E. & Escobar, L. & Panagakos, G., 1989. "Deregulation Of Shipping - What Is To Be Learned From Chile," World Bank - Discussion Papers 67, World Bank.
  2. Joseph Francois & Hugh M. Arce & Kenneth A. Reinert & Joseph E. Flynn, 1996. "Commercial Policy and the Domestic Carrying Trade," Canadian Journal of Economics, Canadian Economics Association, vol. 29(1), pages 181-98, February.
  3. Hallett Andrew Hughes & Braga C. A. Primo, 1994. "The New Regionalism and the Threat of Protectionism," Journal of the Japanese and International Economies, Elsevier, vol. 8(4), pages 388-421, December.
  4. Deardoff, A.V. & Brown, D.K. & Stern, R.M. & Fox, A.K., 1995. "Computational Analysis of Goods and Services Liberalization in the Uruguay Round," Working Papers 379, Research Seminar in International Economics, University of Michigan.
  5. Mackie-Mason, J.K. & Varian, H.R., 1993. "Pricing the Internet," Memorandum 20/1993, Oslo University, Department of Economics.
  6. Binswanger, Hans P. & Khandker, Shahidur R & Rosenzweig, Mark R., 1989. "How infrastructure and financial institutions affect agricultural output and investment in India," Policy Research Working Paper Series 163, The World Bank.
  7. Hoekman, Bernard, 1992. "Conceptual and Political Economy Issues in Liberalizing International Transactions in Services," CEPR Discussion Papers 666, C.E.P.R. Discussion Papers.
  8. Kessides, C., 1993. "Institutional Options for Provision of Infrastructure," World Bank - Discussion Papers 212, World Bank.
  9. Robert Ford & Wim Suyker, 1990. "Industrial Subsidies in the OECD Economies," OECD Economics Department Working Papers 74, OECD Publishing.
  10. Hindley, Brian, 1988. "Service Sector Protection: Considerations for Developing Countries," World Bank Economic Review, World Bank Group, vol. 2(2), pages 205-24, May.
  11. Hill, Alice & Abdala, Manuel Angel & DEC, 1993. "Regulation, institutions, and commitment : privatization and regulation in the Argentine telecommunications sector," Policy Research Working Paper Series 1216, The World Bank.
  12. Francois, Joseph & Reinert, Kenneth A, 1995. "The Role of Services in the Structure of Production and Trade: Stylized Facts from a Cross-Country Analysis," CEPR Discussion Papers 1228, C.E.P.R. Discussion Papers.
  13. Hoekman, B. & Sauve, P., 1995. "Liberalizing Trade in Services," World Bank - Discussion Papers 243, World Bank.
  14. Blomstrom, Magnus & Lipsey, Robert E., 1989. "US multinationals in Latin American service industries," World Development, Elsevier, vol. 17(11), pages 1769-1776, November.
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