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The Euro-mediterranean partnership : trade in services as an alternative to migration ?

  • Hoekman, Bernard
  • Ozden, Caglar

This paper discusses options to facilitate movement of workers between high-income and developing countries within the framework of trade agreements, focusing on the European Union’s partnership agreements with neighboring countries. Existing frameworks for cooperation offer the possibility of expanding temporary rather than longer-term or permanent movement of workers since extant trade agreements provide scope for negotiating specific market access commitments for services, including those delivered through the cross-border movement of natural persons. Even though the potential for such"embodied"trade in services will not be anywhere near what would be associated with substantial liberalization of migration regimes, furthering the services trade dimension in the European Union’s ¬trade agreements offers significant potential Pareto gains. For the partner countries these gains from temporary movement of service providers are both direct - through greater employment in/revenue from providing services in the European Union - and indirect - by helping to increase and sustain higher growth at home.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5049.

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Date of creation: 01 Sep 2009
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Handle: RePEc:wbk:wbrwps:5049
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  1. Walmsley, Terri Louise & Winters, L. Alan, 2003. "Relaxing the Restrictions on the Temporary Movements of Natural Persons: A Simulation Analysis," CEPR Discussion Papers 3719, C.E.P.R. Discussion Papers.
  2. Langhammer, Rolf J., 2005. "The EU offer of service trade liberalization in the Doha Round : evidence of a not-yet-perfect customs union," Open Access Publications from Kiel Institute for the World Economy 3509, Kiel Institute for the World Economy (IfW).
  3. Anna Maria Mayda, 2006. "Who Is Against Immigration? A Cross-Country Investigation of Individual Attitudes toward Immigrants," The Review of Economics and Statistics, MIT Press, vol. 88(3), pages 510-530, August.
  4. Bhatnagar, Pradip & Manning, Chris, 2005. "Regional arrangements for mode 4 in the services trade: lessons from the ASEAN experience," World Trade Review, Cambridge University Press, vol. 4(02), pages 171-199, July.
  5. Alan E. Kessler & Gary P. Freeman, 2005. "Public Opinion in the EU on Immigration from Outside the Community," Journal of Common Market Studies, Wiley Blackwell, vol. 43(4), pages 825-850, November.
  6. L. Alan Winters & Terrie L. Walmsley & Zhen Kun Wang & Roman Grynberg, 2003. "Liberalising Temporary Movement of Natural Persons: An Agenda for the Development Round," The World Economy, Wiley Blackwell, vol. 26(8), pages 1137-1161, 08.
  7. 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.
  8. Schiff, Maurice, 2004. "When Migrants Overstay Their Legal Welcome: A Proposed Solution to the Guest-Worker Program," IZA Discussion Papers 1401, Institute for the Study of Labor (IZA).
  9. Timothy J. Hatton & Jeffrey G. Williamson, 2004. "International Migration in the Long-Run: Positive Selection, Negative Selection and Policy," NBER Working Papers 10529, National Bureau of Economic Research, Inc.
  10. Massimiliano Tani, 2005. "Head-content or Headcount? Temporary Labour Movements as a Source of Growth," Economics Working Papers ECO2005/17, European University Institute.
  11. Jeffrey Grogger & Gordon H. Hanson, 2008. "Income Maximization and the Selection and Sorting of International Migrants," NBER Working Papers 13821, National Bureau of Economic Research, Inc.
  12. Henk Kox & Arjan Lejour, 2006. "The Effects of the Services Directive on Intra-eu Trade and fdi," Revue économique, Presses de Sciences-Po, vol. 57(4), pages 747-769.
  13. Amin, Mohammad & Mattoo, Aaditya, 2006. "Can guest worker schemes reduce illegal migration ?," Policy Research Working Paper Series 3828, The World Bank.
  14. Mattoo, Aaditya & Rathindran, Randeep, 2005. "Does health insurance impede trade inhealth care services?," Policy Research Working Paper Series 3667, The World Bank.
  15. Amin, Mohammad & Mattoo, Aaditya, 2005. "Does temporary migration have to be permanent?," Policy Research Working Paper Series 3582, The World Bank.
  16. Tito Boeri & Herbert Brücker, 2005. "Why are Europeans so tough on migrants?," Economic Policy, CEPR;CES;MSH, vol. 20(44), pages 629-703, October.
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