Publication:
Quantifying the Impact of Services Liberalization in a Developing Country

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dc.contributor.authorKonan, Denise Eby
dc.contributor.authorMaskus, Keith E.
dc.date.accessioned2014-03-27T19:43:54Z
dc.date.available2014-03-27T19:43:54Z
dc.date.issued2004-01
dc.description.abstractThe authors consider how service liberalization differs from goods liberalization in terms of welfare, the level and composition of output, and factor prices within a developing economy, in this case Tunisia. Despite recent movements toward liberalization, Tunisian service sectors remain largely closed to foreign participation and are provided at high cost relative to many developing nations. The authors develop a computable general equilibrium (CGE) model of the Tunisian economy with multiple products and services and three trading partners. They model goods liberalization as the unilateral removal of product tariffs. Restraints on services trade involve both restrictions on cross-border supply (mode 1 in the GATS) and on foreign ownership through foreign direct investment (mode 3 in the GATS). The former are modeled as tariff-equivalent price wedges while the latter are comprised of both monopoly-rent distortions (arising from imperfect competition among domestic producers) and inefficiency costs (arising from a failure of domestic service providers to adopt least-cost practices). They find that goods-trade liberalization yields a gain in aggregate welfare and reorients production toward sectors of benchmark comparative advantage. However, a reduction of services barriers in a way that permits greater competition through foreign direct investment generates larger welfare gains. Service liberalization also requires lower adjustment costs, measured in terms of sectoral movement of workers, than does goods-trade liberalization. And it tends to increase economic activity in all sectors and raise the real returns to both capital and labor. The overall welfare gains of comprehensive service liberalization amount to more than 5 percent of initial consumption. The bulk of these gains come from opening markets for finance, business services, and telecommunications. Because these are key inputs into all sectors of the economy, their liberalization cuts costs and drives larger efficiency gains overall. The results point to the potential importance of deregulating services provision for economic development.en
dc.identifierhttp://documents.worldbank.org/curated/en/2003/01/2880185/quantifying-impact-services-liberalization-developing-country
dc.identifier.doi10.1596/1813-9450-3193
dc.identifier.urihttps://hdl.handle.net/10986/17425
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 3193
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectSERVICES
dc.subjectGOODS
dc.subjectTRADE LIBERALIZATION
dc.subjectWELFARE ECONOMICS
dc.subjectOUTPUTS
dc.subjectFACTOR PRICES
dc.subjectDEVELOPING COUNTRIES
dc.subjectTARIFFS
dc.subjectFOREIGN DIRECT INVESTMENTS
dc.subjectMONOPOLISTIC COMPETITION
dc.subjectCOMPETITIVENESS
dc.subjectDOMESTIC TRADE
dc.subjectAGGREGATE VARIABILITY
dc.subjectDEREGULATION
dc.subjectECONOMIC DEVELOPMENT
dc.subjectACCOUNTING
dc.subjectACCOUNTING PRACTICES
dc.subjectACTUAL COSTS
dc.subjectAGGREGATE IMPORT EXPENDITURES
dc.subjectAGGREGATE TRADE
dc.subjectAGGREGATE TRADE FLOWS
dc.subjectAGREEMENT ON TRADE
dc.subjectAGRICULTURE
dc.subjectBALANCE OF PAYMENTS
dc.subjectBANKING SYSTEM
dc.subjectBENCHMARK
dc.subjectBENCHMARK DATA
dc.subjectBENCHMARK EQUILIBRIUM
dc.subjectBENCHMARK TRADE ELASTICITIES
dc.subjectBENCHMARKS
dc.subjectBORDER TRADE
dc.subjectCAPITAL ACCOUNT
dc.subjectCAPITAL GAINS
dc.subjectCAPITAL INCREASE
dc.subjectCAPITAL INPUTS
dc.subjectCAPITAL STOCK
dc.subjectCAPITAL SUBSTITUTION
dc.subjectCARTEL
dc.subjectCARTELS
dc.subjectCD
dc.subjectCHANGES IN TRADE
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectCOMPETITIVE MARKET
dc.subjectCOMPETITIVE MARKETS
dc.subjectCOMPETITIVENESS
dc.subjectCONSTANT ELASTICITY OF SUBSTITUTION
dc.subjectCONSTANT ELASTICITY OF TRANSFORMATION
dc.subjectCONSTANT RETURNS TO SCALE
dc.subjectCONSUMER PRICE INDEX
dc.subjectCONSUMER PRICES
dc.subjectCONSUMERS
dc.subjectCOUNTRY OF ORIGIN
dc.subjectCURRENT ACCOUNT
dc.subjectCURRENT ACCOUNT BALANCE
dc.subjectCURRENT ENVIRONMENT
dc.subjectCUSTOMS PROCEDURES
dc.subjectDEREGULATION
dc.subjectDOMESTIC PRODUCERS
dc.subjectDOMESTIC SUPPLIERS
dc.subjectECONOMIC ACTIVITY
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC EFFICIENCY
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC RENTS
dc.subjectECONOMICS
dc.subjectECONOMIES OF SCALE
dc.subjectECONOMISTS
dc.subjectELASTICITIES
dc.subjectELASTICITY OF SUBSTITUTION
dc.subjectEMPIRICAL EVIDENCE
dc.subjectEMPIRICAL INFORMATION
dc.subjectEMPIRICAL STUDIES
dc.subjectEQUILIBRIUM
dc.subjectEQUIVALENT VARIATION
dc.subjectEXCHANGE RATE
dc.subjectEXPORT INDUSTRIES
dc.subjectEXPORT SECTORS
dc.subjectEXPORT TRADE
dc.subjectEXPORT VOLUMES
dc.subjectEXPORTS
dc.subjectFACTOR DEMAND
dc.subjectFINAL GOODS
dc.subjectFINANCIAL SECTOR
dc.subjectFINANCIAL SERVICES
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFOREIGN ENTRY
dc.subjectFOREIGN FIRMS
dc.subjectFOREIGN INVESTMENT
dc.subjectFOREIGN MARKETS
dc.subjectFOREIGN OWNERSHIP
dc.subjectFOREIGN SALES
dc.subjectFOREIGN SUPPLIERS
dc.subjectFREE GOODS
dc.subjectFRICTIONAL UNEMPLOYMENT
dc.subjectFULL LIBERALIZATION
dc.subjectGDP
dc.subjectGENERAL EQUILIBRIUM MODEL
dc.subjectGLOBAL INTEGRATION
dc.subjectGOVERNMENT EXPENDITURES
dc.subjectGRAVITY MODEL
dc.subjectIMPERFECT COMPETITION
dc.subjectIMPORT CONSUMPTION
dc.subjectIMPORT PRICES
dc.subjectIMPORTS
dc.subjectINCOME
dc.subjectINCOME ELASTICITIES
dc.subjectINEFFICIENCY
dc.subjectINSURANCE
dc.subjectINTEREST RATE
dc.subjectINTERMEDIATE IMPORTS
dc.subjectINTERMEDIATE INPUTS
dc.subjectINTERNATIONAL PRICES
dc.subjectINTERNATIONAL STANDARDS
dc.subjectINTERNATIONAL TRADE
dc.subjectINVESTMENT FLOWS
dc.subjectINVESTMENT LIBERALIZATION
dc.subjectLABOR FORCE
dc.subjectLAWS
dc.subjectLIBERALIZATION OF TRADE
dc.subjectLIBERALIZATION OF TRADE IN GOODS
dc.subjectLOST TARIFF REVENUES
dc.subjectMARGINAL COST
dc.subjectMARGINAL COST CONDITION
dc.subjectMARGINAL COSTS
dc.subjectMARKET POWER
dc.subjectMARKET STRUCTURE
dc.subjectPOLICY RESEARCH
dc.subjectPREFERENTIAL TREATMENT
dc.subjectPRICE ELASTICITY
dc.subjectPRICE ELASTICITY OF DEMAND
dc.subjectPRICE INCREASES
dc.subjectPRIMARY FACTORS
dc.subjectPRIVATIZATION
dc.subjectPRODUCERS
dc.subjectPRODUCT DIFFERENTIATION
dc.subjectPRODUCTION FUNCTION
dc.subjectPRODUCTION FUNCTIONS
dc.subjectPRODUCTIVITY
dc.subjectPUBLIC SERVICES
dc.subjectREAL EXCHANGE RATE
dc.subjectREAL INCOME
dc.subjectREAL PRICES
dc.subjectREGIONAL TRADE
dc.subjectRETURN ON CAPITAL
dc.subjectSAVINGS
dc.subjectSERVICE DELIVERY
dc.subjectSPECIALIZATION
dc.subjectSUBSIDIARIES
dc.subjectTARIFF CLASSIFICATION
dc.subjectTARIFF DATA
dc.subjectTARIFF RATES
dc.subjectTAX RATES
dc.subjectTAX REVENUES
dc.subjectTELECOMMUNICATIONS
dc.subjectTOTAL OUTPUT
dc.subjectTRADE AGREEMENT
dc.subjectTRADE BALANCE
dc.subjectTRADE COSTS
dc.subjectTRADE LIBERALIZATION
dc.subjectTRADE PATTERNS
dc.subjectTRADE REFORM
dc.subjectTRADE REFORMS
dc.subjectTRANSPORT
dc.subjectUNEMPLOYMENT
dc.subjectUNILATERAL TRADE
dc.subjectUNILATERAL TRADE LIBERALIZATION
dc.subjectUTILITY FUNCTION
dc.subjectVALUE ADDED
dc.subjectWAGES
dc.subjectWELFARE GAINS
dc.subjectWELFARE IMPACTS
dc.subjectWORLD TRADE
dc.subjectWORLD TRADE ORGANIZATION
dc.titleQuantifying the Impact of Services Liberalization in a Developing Countryen
dspace.entity.typePublication
okr.crossref.titleQuantifying the Impact of Services Liberalization in a Developing Country
okr.date.doiregistration2025-04-10T10:50:24.784726Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2003/01/2880185/quantifying-impact-services-liberalization-developing-country
okr.globalpracticeGovernance
okr.globalpracticeHealth, Nutrition, and Population
okr.globalpracticeTrade and Competitiveness
okr.guid345961468760554735
okr.identifier.doi10.1596/1813-9450-3193
okr.identifier.externaldocumentum000012009_20040204152855
okr.identifier.internaldocumentum2880185
okr.identifier.reportWPS3193
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2004/02/04/000012009_20040204152855/Rendered/PDF/WPS3193.pdfen
okr.region.administrativeMiddle East and North Africa
okr.region.countryTunisia
okr.topicPublic Sector Development::Decentralization
okr.topicHealth Economics and Finance
okr.topicInternational Economics and Trade::Free Trade
okr.topicBanks and Banking Reform
okr.topicPayment Systems and Infrastructure
okr.topicEconomic Theory and Research
okr.topicEnvironmental Economics and Policies
okr.topicHealth, Nutrition and Population
okr.unitOff of Sr VP Dev Econ/Chief Econ (DECVP)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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