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Assessing the Benefits to Developing Countries of Liberalisation in Services Trade


  • John Whalley


This paper discusses the potential impacts of services trade liberalisation on developing countries and reviews existing quantitative studies. Its purpose is to distill themes from current literature rather than to advocate specific policy changes. The picture emerging is one of valiant attempts to quantify in the presence of formidable analytical and data problems yielding only a clouded image of likely impacts on trade, consumption, production and welfare emerging to the point that the policy implications of results are not always clear. Copyright 2004 Blackwell Publishing Ltd.

Suggested Citation

  • John Whalley, 2004. "Assessing the Benefits to Developing Countries of Liberalisation in Services Trade," The World Economy, Wiley Blackwell, vol. 27(8), pages 1223-1253, August.
  • Handle: RePEc:bla:worlde:v:27:y:2004:i:8:p:1223-1253

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    References listed on IDEAS

    1. Markusen, James & Rutherford, Thomas F. & Tarr, David, 2000. "Foreign direct investment in services and the domestic market for expertise," Policy Research Working Paper Series 2413, The World Bank.
    2. Sherman Robinson & Zhi Wang & Will Martin, 2002. "Capturing the Implications of Services Trade Liberalization," Economic Systems Research, Taylor & Francis Journals, vol. 14(1), pages 3-33.
    3. Mattoo, Aaditya & Rathindran, Randeep, 2006. "Measuring Services Trade Liberalization and Its Impact on Economic Growth: An Illustration," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 21, pages 64-98.
    4. Chadha, R. & Brown, D.K. & Deardorff, A.V. & Stern, R.M., 2000. "Computational Analysis of the Impact on India of the Uruguay Round and the Forthcoming WTO Trade Negotiations," Working Papers 459, Research Seminar in International Economics, University of Michigan.
    5. Drusilla K. Brown & Alan V. Deardorff & Robert M Stern, 2002. "Computational Analysis of Multilateral Trade Liberalization in the Uruguay Round and Doha Development Round," Working Papers 489, Research Seminar in International Economics, University of Michigan.
    6. John Whalley, 1984. "Trade Liberalization among Major World Trading Areas," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262231204, July.
    7. Keshab Bhattarai & John Whalley, 2006. "The Division and Size of Gains from Liberalization in Service Networks," Review of International Economics, Wiley Blackwell, vol. 14(3), pages 348-361, August.
    8. Ross Levine, 1997. "Financial Development and Economic Growth: Views and Agenda," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 688-726, June.
    9. Martin, W. & Winters, L.A., 1995. "The Uruguay Round and the Developing Countries," World Bank - Discussion Papers 307, World Bank.
    10. Cillian Ryan, 1990. "Trade Liberalisation and Financial Services," NBER Chapters,in: New Issues in the Uruguay Round, pages 349-366 National Bureau of Economic Research, Inc.
    11. Melvin, James R, 1989. "Trade in Producer Services: A Heckscher-Ohlin Approach," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1180-1196, October.
    12. King, Robert G. & Levine, Ross, 1993. "Finance, entrepreneurship and growth: Theory and evidence," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 513-542, December.
    13. Zerby, J A & Conlon, R M, 1983. "Joint Costs and Intra-Tariff Cross-Subsidies: The Case of Liner Shipping," Journal of Industrial Economics, Wiley Blackwell, vol. 31(4), pages 383-396, June.
    14. Ryan, Cillian, 1992. "The Integration of Financial Services and Economic Welfare after `1992'," CEPR Discussion Papers 677, C.E.P.R. Discussion Papers.
    15. Philippa Dee & Kevin Hanslow, 2002. "Multilateral liberalisation of services trade," International Trade 0207002, EconWPA.
    16. Christopher Findlay, 1997. "The APEC Air Transport Schedule," Asia Pacific Economic Papers 273, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    17. Aadtya Mattoo, 2000. "Financial Services and the WTO: Liberalisation Commitments of the Developing and Transition Economies," The World Economy, Wiley Blackwell, vol. 23(3), pages 351-386, March.
    18. 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.
    19. Shoven, John B & Whalley, John, 1984. "Applied General-Equilibrium Models of Taxation and International Trade: An Introduction and Survey," Journal of Economic Literature, American Economic Association, vol. 22(3), pages 1007-1051, September.
    20. repec:fth:michin:459 is not listed on IDEAS
    21. Ngee Choon Chia & Whalley, John, 1997. "A numerical example showing globally welfare-worsening liberalization of international trade in banking services," Journal of Policy Modeling, Elsevier, vol. 19(2), pages 119-127, April.
    22. Hamilton, Bob & Whalley, John, 1984. "Efficiency and distributional implications of global restrictions on labour mobility : Calculations and policy implications," Journal of Development Economics, Elsevier, vol. 14(1), pages 61-75.
    23. 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 181-198, February.
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    Cited by:

    1. Thierry MONTALIEU & Isabelle RABAUD, 2006. "Trade in Services: How does it Work for MENA Countries?," LEO Working Papers / DR LEO 1688, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    2. Anderson, Kym, 2004. "Setting the Trade Policy Agenda: What Roles for Economists?," Working Papers 14574, International Agricultural Trade Research Consortium.
    3. Konan, Denise Eby & Van Assche, Ari, 2007. "Regulation, market structure and service trade liberalization," Economic Modelling, Elsevier, vol. 24(6), pages 895-923, November.
    4. Innwon Park & Soonchan Park, 2011. "Regional Liberalisation of Trade in Services," The World Economy, Wiley Blackwell, vol. 34, pages 725-740, May.
    5. Hui Huang & John Whalley & Shunming Zhang, 2005. "Trade Liberalization in a Joint Spatial Inter-Temporal Trade Model," CESifo Working Paper Series 1463, CESifo Group Munich.
    6. Rolf Maier, 2005. "Trade Policy and Pro-Poor Growth," International Trade 0504007, EconWPA.
    7. Kym Anderson, 2005. "On the Virtues of Multilateral Trade Negotiations," The Economic Record, The Economic Society of Australia, vol. 81(255), pages 414-438, December.
    8. Keith Walsh, 2006. "Trade in Services: Does Gravity Hold? A Gravity Model Approach to Estimating Barriers to Services Trade," The Institute for International Integration Studies Discussion Paper Series iiisdp183, IIIS.
    9. Eric Ng & John Whalley, 2008. "Visas and work permits: Possible global negotiating initiatives," The Review of International Organizations, Springer, vol. 3(3), pages 259-285, September.
    10. Jan Hagemejer & Jan Michałek & Tomasz Michałek, 2010. "Implications of the Doha Round negotiations in services for Poland," Bank i Kredyt, Narodowy Bank Polski, vol. 41(1), pages 5-30.
    11. Anderson, Kym, 2004. "The challenge of reducing subsidies and trade barriers," Policy Research Working Paper Series 3415, The World Bank.
    12. Oetzel, Jennifer M. & Banerjee, Sudeshna Ghosh, 2008. "A case of the tortoise versus the hare? Deregulation process, timing, and firm performance in emerging markets," International Business Review, Elsevier, vol. 17(1), pages 54-77, February.
    13. Aidan Islyami, 2009. "Trade in Intermediate Producer Services under Imperfect Competition," FIW Working Paper series 020, FIW.
    14. Isabelle Rabaud, 2014. "Gains à l'échange de services pour les pays africains : mythe ou réalité ?," Working Papers halshs-01250890, HAL.
    15. Isabelle Rabaud & Thierry Montalieu, 2012. "Une analyse critique des mesures de restrictions aux échanges de services," Post-Print halshs-01064953, HAL.
    16. Jie Zhang & Camilla Jensen, 2005. "Comparative Advantage in Tourism - A Supply-Side Analysis of Tourism Flows," ERSA conference papers ersa05p183, European Regional Science Association.
    17. John Whalley, 2003. "Liberalization in China's Key Service Sectors Following WTO Accession: Some Scenarios and Issues of Measurement," NBER Working Papers 10143, National Bureau of Economic Research, Inc.
    18. Chisari, Omar O. & Maquieyra, Javier & Romero, Carlos A., 2009. "Liberalization of trade in services: A CGE analysis for Argentina, Brazil and Uruguay," MPRA Paper 15336, University Library of Munich, Germany.
    19. Quamrul Alam & Mohammad Abu Yusuf & Ken Coghill, 2010. "Unilateral liberalisation and WTO GATS commitments: the telecommunications sector in selected countries," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 24(1), pages 43-64, May.
    20. Bchir, Mohamed Hedi, 2008. "The effect of mode 4 liberalization on illegal immigration," Economic Modelling, Elsevier, vol. 25(5), pages 1051-1063, September.
    21. Henk Kox & Arjan Lejour, 2004. "A different approach to WTO negotiations in services," CPB Discussion Paper 36, CPB Netherlands Bureau for Economic Policy Analysis.
    22. Christen, Elisabeth & Francois, Joseph & Hoekman, Bernard, 2013. "Computable General Equilibrium Modeling of Market Access in Services," Handbook of Computable General Equilibrium Modeling, Elsevier.
    23. Isabelle RABAUD, 2014. "Gains à l'échange de services pour les pays africains : Mythe ou réalité ?," LEO Working Papers / DR LEO 1808, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.

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    JEL classification:

    • F1 - International Economics - - Trade


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