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Trade Effects of Services Trade Liberalization in the EU

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Listed:
  • Joseph F. Francois

    (wiiw)

  • Olga Pindyuk

    (wiiw)

  • Julia Woerz

    (wiiw)

Abstract

This paper gives a quantitative assessment of possible trade effects resulting from different trade liberalization scenarios within the EU. The simulations are based on the GTAP model, a computable general equilibrium model. We use the GTAP database and own estimates of protection in the service sector. We compare different scenarios, which differ in the extent of their liberalization (linear versus sector country and specific cuts in existing trade barriers, including all sectors versus only selected sectors). Our findings point towards larger gains from more comprehensive cuts (i.e. including all service sectors) and larger gains for the - up to date more restricted - new EU members.

Suggested Citation

  • Joseph F. Francois & Olga Pindyuk & Julia Woerz, 2008. "Trade Effects of Services Trade Liberalization in the EU," FIW Research Reports series I-004, FIW.
    • Handle: RePEc:wsr:ecbook:2008:i:i-004
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    References listed on IDEAS

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    1. Paul Conway & Véronique Janod & Giuseppe Nicoletti, 2005. "Product Market Regulation in OECD Countries: 1998 to 2003," OECD Economics Department Working Papers 419, OECD Publishing.
    2. Sherman Robinson & Zhi Wang & Will Martin, 2002. "Capturing the Implications of Services Trade Liberalization," Economic Systems Research, Taylor & Francis Journals, vol. 14(1), pages 3-33.
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    5. Julia Woerz & Olga Pindyuk, 2008. "Trade in Services: Note on the Measurement and Quality of Data Sources," FIW Research Reports series I-001, FIW.
    6. Hertel, Thomas W. & Swaminathan, Padma V., 1996. "Introducing Monopolistic Competition Into The Gtap Model," Technical Papers 28704, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Carmen Fillat Castej�n & Joseph F. Francois & Julia Woerz, 2008. "Trade through FDI: investing in services," Documentos de Trabajo dt2008-06, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    8. Julia Nielson & Daria Taglioni, 2004. "Services Trade Liberalisation: Identifying Opportunities and Gains," OECD Trade Policy Papers 1, OECD Publishing.
    9. 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.
    10. Joseph Francois & Hans Van Meijl & Frank Van Tongeren, 2005. "Trade liberalization in the Doha Development Round [Trade in Manufactures, the Outcome of the Uruguay Round and Developing Country Interests]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 20(42), pages 350-391.
    11. Francois, Joseph F., 1998. "Scale Economies And Imperfect Competition In The Gtap Model," Technical Papers 28718, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    12. Buch, Claudia M. & Lipponer, Alexander, 2004. "FDI versus cross-border financial services: The globalisation of German banks," Discussion Paper Series 1: Economic Studies 2004,05, Deutsche Bundesbank.
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    16. Paul Conway & Giuseppe Nicoletti, 2006. "Product Market Regulation in the Non-Manufacturing Sectors of OECD Countries: Measurement and Highlights," OECD Economics Department Working Papers 530, OECD Publishing.
    17. Deardoff, A.V. & Brown, D.K. & Stern, R.M., 1995. "Modelling Multilateral Trade Liberalization in Services," Working Papers 378, Research Seminar in International Economics, University of Michigan.
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    Cited by:

    1. Innwon Park & Soonchan Park, 2011. "Regional Liberalisation of Trade in Services," The World Economy, Wiley Blackwell, vol. 34, pages 725-740, May.
    2. Oliver Fritz & Gerhard Streicher, 2008. "Trade Effects of Service Liberalization in the EU. Simulation of Regional Macroeconomic Effects for Austria," WIFO Studies, WIFO, number 34221.
    3. Oliver Fritz & Gerhard Streicher, 2008. "Trade Effects of Service Liberalization in the EU. Simulation of Regional Macroeconomic Effects for Austria," WIFO Studies, WIFO, number 34221.
    4. Egger, Peter & Larch, Mario & Staub, Kevin E, 2012. "Trade Preferences and Bilateral Trade in Goods and Services: A Structural Approach," CEPR Discussion Papers 9051, C.E.P.R. Discussion Papers.

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    More about this item

    Keywords

    export of services; trade liberalization; computable general equilibrium modelling; services trade;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

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