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Services, Economic Development and the Doha Round: Exploiting the Comparative Advantage of the WTO

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  • Hoekman, Bernard
  • Mattoo, Aaditya

Abstract

This paper discusses what could be done to expand services trade and investment through a multilateral agreement in the WTO. A distinction is made between market access liberalization and the regulatory preconditions for benefiting from market opening. We argue that moving forward on multilateral services liberalization requires a shift from bilateral request-offer negotiations to a model schedule approach that sets ambitious objectives - ideally full national treatment for the major backbone services. Attainment of such objectives, especially by smaller and poorer members, requires procompetitive regulation and strengthened regulatory institutions in developing countries. This suggests linking implementation of liberalization commitments to the provision of development assistance (‘aid for trade’) to bolster regulatory capacity and enforcement could enhance the relevance of the WTO for developing countries. Bolstering WTO mechanisms to monitor the actions of both developing and high-income country governments could make the institution much more relevant in promoting not just services liberalization but, more importantly, domestic reform of services policies.

Suggested Citation

  • Hoekman, Bernard & Mattoo, Aaditya, 2006. "Services, Economic Development and the Doha Round: Exploiting the Comparative Advantage of the WTO," CEPR Discussion Papers 5628, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:5628
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    References listed on IDEAS

    as
    1. Mattoo, Aaditya & Wunsch, Sacha, 2004. "Pre-empting protectionism in services - the WTO and outsourcing," Policy Research Working Paper Series 3237, The World Bank.
    2. Will Martin & Kym Anderson, 2006. "Agricultural Trade Reform and the Doha Development Agenda," World Bank Publications, The World Bank, number 6889.
    3. Mattoo, Aaditya & Rathindran, Randeep, 2005. "Does health insurance impede trade inhealth care services?," Policy Research Working Paper Series 3667, The World Bank.
    4. Chaudhuri, Sumanta & Mattoo, Aaditya & Self, Richard, 2004. "Moving people to deliver services : how can the WTO help?," Policy Research Working Paper Series 3238, The World Bank.
    5. Hoekman, Bernard & Konan, Denise, 1999. "Deep Integration, Non-Discrimination and Euro-Mediterranean Free Trade," CEPR Discussion Papers 2095, C.E.P.R. Discussion Papers.
    6. 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.
    7. Bjorn Wellenius, 2000. "Extending Telecommunications beyond the Market : Toward Universal Service in Competitive Environments," World Bank Other Operational Studies 11439, The World Bank.
    8. Konan, Denise Eby & Maskus, Keith E., 2006. "Quantifying the impact of services liberalization in a developing country," Journal of Development Economics, Elsevier, vol. 81(1), pages 142-162, October.
    9. Walmsley, Terrie L. & Winters, L. Alan, 2005. "Relaxing the Restrictions on the Temporary Movement of Natural Persons: A Simulation Analysis," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 20, pages 688-726.
    10. Thomas W. Hertel & L. Alan Winters, 2006. "Poverty and the WTO : Impacts of the Doha Development Agenda," World Bank Publications, The World Bank, number 7411.
    11. Mattoo, Aaditya, 2005. "Services in a development round : three goals and three proposals," Policy Research Working Paper Series 3718, The World Bank.
    12. Thomas W. Hertel & L. Alan Winters, 2005. "Estimating the Poverty Impacts of a Prospective Doha Development Agenda," The World Economy, Wiley Blackwell, vol. 28(8), pages 1057-1071, August.
    13. Harald Grethe, 2006. "Agricultural Trade Reform and the Doha Development Agenda," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 33(4), pages 591-595, December.
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    Citations

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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. 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.
    3. Ghani, Ejaz, 2012. "Service with a Smile," World Bank - Economic Premise, The World Bank, issue 96, pages 1-6, November.
    4. Hoekman, Bernard & Mattoo, Aaditya, 2007. "Regulatory cooperation, aid for trade and the general agreement on trade in services," Policy Research Working Paper Series 4451, The World Bank.

    More about this item

    Keywords

    Doha round; investment; negotiations; services trade; WTO;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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