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Political Economy Of Service Trade Liberalization And The Doha Round

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  • K.C. Fung
  • Alan Siu

Abstract

In this paper we examine political economic issues of service trade liberalization of a developing country in the context of the Doha Round negotiations. We first discuss the various unique characteristics of the service industries. Then we incorporate these features in a Grossman-Helpman style political economy model and solve for the politically-determined service sector protection. We then examine how various factors such as increased cross-cutting lobbying, the reduction of state-owned service providers and linking negotiation on agricultural protection with negotiation on service sector liberalization can help reduce the political constraints on liberalizing the service sectors. Copyright 2008 The Authors Journal compilation 2008 Blackwell Publishing Ltd

Suggested Citation

  • K.C. Fung & Alan Siu, 2008. "Political Economy Of Service Trade Liberalization And The Doha Round," Pacific Economic Review, Wiley Blackwell, vol. 13(1), pages 124-133, February.
  • Handle: RePEc:bla:pacecr:v:13:y:2008:i:1:p:124-133
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    References listed on IDEAS

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    1. Bernard Hoekman & Carlos Braga, 1997. "Protection and Trade in Services: A Survey," Open Economies Review, Springer, vol. 8(3), pages 285-308, July.
    2. Rama, Martin & Tabellim, Guido, 1998. "Lobbying by capital and labor over trade and labor market policies," European Economic Review, Elsevier, vol. 42(7), pages 1295-1316, July.
    3. B. Douglas Bernheim & Michael D. Whinston, 1986. "Menu Auctions, Resource Allocation, and Economic Influence," The Quarterly Journal of Economics, Oxford University Press, vol. 101(1), pages 1-31.
    4. Seade, Jesus K, 1980. "On the Effects of Entry," Econometrica, Econometric Society, vol. 48(2), pages 479-489, March.
    5. Ito, Takatoshi & Krueger, Anne O. (ed.), 2003. "Trade in Services in the Asia-Pacific Region," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226386775, December.
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    Cited by:

    1. Joseph Francois & Bernard Hoekman, 2010. "Services Trade and Policy," Journal of Economic Literature, American Economic Association, vol. 48(3), pages 642-692, September.
    2. Matteo Fiorini & Mathilde Lebrand, 2016. "The Political Economy of Services Trade Agreements," CESifo Working Paper Series 5927, CESifo Group Munich.
    3. Innwon Park & Soonchan Park, 2011. "Regional Liberalisation of Trade in Services," The World Economy, Wiley Blackwell, vol. 34, pages 725-740, May.
    4. Alicia García-Herrero & KC Fung & Nathalie Aminian & Francis Ng, 2012. "Trade in services: East Asian and Latin American Experiences," Working Papers 1204, BBVA Bank, Economic Research Department.
    5. Barbara Dluhosch & Nikolai Ziegler, 2011. "The paradox of weakness in the politics of trade integration," Constitutional Political Economy, Springer, vol. 22(4), pages 325-354, December.

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