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Services trade liberalization and regulatory reform : re-invigorating international cooperation

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  • Hoekman, Bernard
  • Mattoo, Aaditya

Abstract

Trade and investment in services are inhibited by a range of policy restrictions, but the best offers so far in the Doha negotiations are on average twice as restrictive as actual policy. They will generate no additional market opening. Regulatory concerns help explain the limited progress. This paper develops two proposals to enhance the prospects for both liberalization of services trade and regulatory reform. The first is for governments to create mechanisms ("services knowledge platforms") to bring together regulators, trade officials, and stakeholders to discuss services regulatory reform. Such mechanisms could identify reform priorities and opportunities for utilization of"aid for trade"resources, thereby putting in place the preconditions for future market opening. The second proposal is for a new approach to negotiations in the World Trade Organization, with a critical mass of countries that account for the bulk of services production agreeing to lock-in applied levels of protection and pre-committing to reform of policies affecting foreign direct investment and international movement for individual service providers -- two areas where current policy is most restrictive and potential benefits from liberalization are greatest. If these proposals cannot be fully implemented in the Doha time frame, then any Doha agreement could at least lay the basis for a forward-looking program of international cooperation along the proposed lines.

Suggested Citation

  • Hoekman, Bernard & Mattoo, Aaditya, 2011. "Services trade liberalization and regulatory reform : re-invigorating international cooperation," Policy Research Working Paper Series 5517, The World Bank.
  • Handle: RePEc:wbk:wbrwps:5517
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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. Jens Matthias Arnold & Beata Javorcik & Molly Lipscomb & Aaditya Mattoo, 2016. "Services Reform and Manufacturing Performance: Evidence from India," Economic Journal, Royal Economic Society, vol. 126(590), pages 1-39, February.
    3. Will Martin & Patrick Messerlin, 2007. "Why is it so difficult? Trade liberalization under the Doha Agenda," Oxford Review of Economic Policy, Oxford University Press, vol. 23(3), pages 347-366, Autumn.
    4. Charles Sabel & Sanjay Reddy, 2007. "Learning to Learn: Undoing the Gordian Knot of Development Today," Challenge, Taylor & Francis Journals, vol. 50(5), pages 73-92.
    5. Patrick Messerlin & Erik Van Der Marel, 2012. "The Dynamics of Transatlantic Negotiations in Services," Sciences Po publications info:hdl:2441/faqom67ai2q, Sciences Po.
    6. Jens Matthias Arnold & Aaditya Mattoo & Gaia Narciso, 2008. "Services Inputs and Firm Productivity in Sub-Saharan Africa: Evidence from Firm-Level Data," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 17(4), pages 578-599, August.
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    Citations

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    Cited by:

    1. Matthieu Crozet & Emmanuel Milet & Daniel Mirza, 2013. "The Discriminatory Effect of Domestic Regulations on International Trade in Services: Evidence from Firm-Level Data," Documents de travail du Centre d'Economie de la Sorbonne 13019, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    2. World Bank, 2012. "World Development Report 2013
      [Informe anual del Banco Mundial de 2013 : poner fin a la pobreza extrema, promover la prosperidad compartida - informe principal]
      ," World Bank Publications, The World Bank, number 11843.
    3. Fan, Ying, 2011. "Services Policy Reform in the People’s Republic of China: Before and After the Global Financial Crisis," ADBI Working Papers 304, Asian Development Bank Institute.
    4. Philippa Dee & Anne McNaughton, 2011. "Promoting Domestic Reforms through Regionalism," Governance Working Papers 23224, East Asian Bureau of Economic Research.
    5. Klaus Deutsch, 2011. "Doha or Dada: The World Trade Regime at an Historic Crossroads," Working Papers id:4292, eSocialSciences.

    More about this item

    Keywords

    Trade and Services; Public Sector Corruption&Anticorruption Measures; Emerging Markets; Economic Theory&Research; ICT Policy and Strategies;

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business
    • F5 - International Economics - - International Relations, National Security, and International Political Economy
    • L80 - Industrial Organization - - Industry Studies: Services - - - General

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