Measurement and Modeling of the Economic Effects of Trade and Investment Barriers in Services
In this paper, the authors adapt the latest version of the Michigan Model of World Production and Trade to incorporate cross-border services trade and foreign direct investment (FDI). Firms are taken to be monopolistically competitive. Each firm produces products differentiated by the original R&D that defines the basic product and by location of production. Each firm faces a fixed cost in the country where production occurs, and sets an optimal mark-up for sales from each location. Firms locate production for export or for local consumption depending on the type of barriers faced. Barriers to trade in services take the form of an additional cost of employing variable capital and labor. The paper reports the impact on welfare, trade, factor prices, sectoral output, economies of scale, and activities of multinationals following the introduction of national treatment of multinational firms in all countries. Copyright 2001 by Blackwell Publishing Ltd.
(This abstract was borrowed from another version of this item.)
|Date of creation:||2000|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (617) 627-3560
Fax: (617) 627-3917
Web page: http://ase.tufts.edu/economics
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Terrie L. Walmsley, 1999. "Incorporating International Capital Ownership into the GTAP Model: Results for Asia-Pacific Trade Liberalisation," Centre of Policy Studies/IMPACT Centre Working Papers ip-72, Victoria University, Centre of Policy Studies/IMPACT Centre.
- 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.
- James R. Markusen & Thomas F. Rutherford & David Tarr, 2000. "Foreign Direct Investments in Services and the Domestic Market for Expertise," NBER Working Papers 7700, National Bureau of Economic Research, Inc.
- Markusen, James R. & Rutherford, Thomas F. & Hunter, Linda, 1995. "Trade liberalization in a multinational-dominated industry," Journal of International Economics, Elsevier, vol. 38(1-2), pages 95-117, February.
- Philip D. Adams & Mark Horridge & Brian Parmenter & Xiao-Guang Zhang, 1998. "Long-run Effects on China of APEC Trade Liberalisation," Centre of Policy Studies/IMPACT Centre Working Papers g-130, Victoria University, Centre of Policy Studies/IMPACT Centre.
- Hoekman, Bernard & Primo Braga, Carlos, 1997.
"Protection and Trade in Services: A Survey,"
CEPR Discussion Papers
1705, C.E.P.R. Discussion Papers.
- Philip D. Adams, 1998. "Long-run Effects of APEC Trade Liberalisation: An Applied General Equilibrium Analysis," The World Economy, Wiley Blackwell, vol. 21(7), pages 931-952, 09.
- Alan V. Deardorff & Robert M. Stern, 1997. "Measurement of Non-Tariff Barriers," OECD Economics Department Working Papers 179, OECD Publishing.
- Ianchovichina, Elena & Robert McDougall & Thomas W. Hertel, 2000. "A Disequilibrium Model of International Capital Mobility," GTAP Working Papers 399, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
- Winters, L. Alan, 1994. "The Liberalization of European Steel Trade," CEPR Discussion Papers 1002, C.E.P.R. Discussion Papers.
- Philippa Dee & Kevin Hanslow, 2002. "Multilateral liberalisation of services trade," International Trade 0207002, EconWPA.
- Mattoo, Aaditya, 1998. "Financial services and the WTO: Liberalization in the developing and transition economies," WTO Staff Working Papers TISD-98-03, World Trade Organization (WTO), Economic Research and Statistics Division.
When requesting a correction, please mention this item's handle: RePEc:tuf:tuftec:0001. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Caroline Kalogeropoulos)
If references are entirely missing, you can add them using this form.