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The Economic Effects of Removing Barriers to Trade in Telecommunications and Financial Services

Author

Listed:
  • Verikios, George
  • Zhang, Xiao-Guang

Abstract

This paper quantifies the impact on the economies of the world of complete liberalisation of trade in two key services sectors, telecommunications and financial services, using a global general equilibrium model. The paper uses new estimates of these barriers for telecommunications and financial services. The results indicate that completely liberalising trade in telecommunications and financial services would benefit the world as a whole. Although the distribution of gains among regions is not even, most regions are projected to gain from the liberalisation. In general, the regions with the highest barriers benefit most. The analysis demonstrates that commercial presence of foreign firms via foreign direct investment is an important mode of delivering telecommunications and financial services.

Suggested Citation

  • Verikios, George & Zhang, Xiao-Guang, 2001. "The Economic Effects of Removing Barriers to Trade in Telecommunications and Financial Services," Conference papers 330938, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:330938
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    File URL: https://ageconsearch.umn.edu/record/330938/files/3511.pdf
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