Balistreri, Edward J.Rutherford, Thomas F.Tarr, David G.2012-05-292012-05-292008-03https://hdl.handle.net/10986/6496This paper employs a 55 sector small open economy computable general equilibrium model of the Kenyan economy to assess the impact of the liberalization of regulatory barriers against foreign and domestic business service providers in Kenya. The model incorporates productivity effects in both goods and services markets endogenously, through a Dixit-Stiglitz framework. It estimates the ad valorem equivalent of barriers to foreign direct investment based on detailed questionnaires completed by specialists in Kenya. The authors estimate that Kenya will gain about 11 percent of the value of Kenyan consumption in the medium run (or about 10 percent of gross domestic product) from a full reform package that also includes uniform tariffs. The estimated gains increase to 77 percent of consumption in the long-run steady-state model, where the impact on the accumulation of capital from an improvement in the productivity of capital is taken into account. Decomposition exercises reveal that the largest gains to Kenya will derive from liberalization of costly regulatory barriers that are non-discriminatory in their impacts between Kenyan and multinational service providers.CC BY 3.0 IGOACCESS TO INSURANCEACCOUNTINGAFFILIATEAFFILIATESAGRICULTURAL OUTPUTAGRICULTUREAIRBANK PAPERWORKBANK POLICYBANKING SERVICESBANKSBASE YEARBENCHMARKBOARDS OF DIRECTORSBRANCH BANKINGBUSINESS LICENSESCAPITAL OWNERSCAPITAL STOCKCAPITALSCOLLATERALCOLLATERAL REQUIREMENTSCOMMON MARKETCOMPETITIVENESSCONSTANT RETURNS TO SCALECONSUMER INTERESTSCOST STRUCTURECREDIT RATINGCREDIT RATING AGENCIESCUSTOMS UNIONDEBTDEBT CONTRACTSDEVELOPING COUNTRIESDEVELOPMENT ECONOMICSDOMESTIC INVESTORSDOMESTIC MARKETECONOMIC DEVELOPMENTECONOMIC GEOGRAPHYECONOMIC THEORYECONOMICS LITERATUREELASTICITIESELASTICITYELASTICITY OF SUBSTITUTIONEMPLOYMENTEQUILIBRIUMEQUILIBRIUM VALUEEXCHANGE RATEEXPENDITURESEXPORTSEXTERNALITIESEXTERNALITYFACTORS OF PRODUCTIONFEDERAL RESERVEFEDERAL RESERVE BANKFINANCIAL SECTORFINANCIAL SERVICESFINANCIAL SUPPORTFIRM PERFORMANCEFIXED RATEFOREIGN BANKSFOREIGN DIRECT INVESTMENTFOREIGN ENTRYFOREIGN FIRMFOREIGN FIRMSFOREIGN INVESTMENTFOREIGN INVESTORSFREIGHTGDPGOVERNMENT BUDGETGOVERNMENT REGULATIONGROSS DOMESTIC PRODUCTIMPERFECT COMPETITIONIMPORT TARIFFSINCOMEINCREASING RETURNSINCREASING RETURNS TO SCALEINSURANCEINSURANCE COMPANYINSURANCE MARKETINTERNATIONAL BANKINTERNATIONAL ECONOMICSINTERNATIONAL ECONOMYINTERNATIONAL STANDARDSINTERNATIONAL TRADEINVESTMENT BARRIERSJOINT VENTUREJOINT VENTURE PARTNERSJOINT VENTURESLAWSLEGAL SYSTEMLOCAL INVESTORMARGINAL COSTMARGINAL COSTSMARGINAL PRODUCTMARGINAL PRODUCTIVITYMARGINAL REVENUEMARITIME TRANSPORTMARKET ACCESSMARKET ECONOMYMARKET PRICESMARKET SHARESMICRO ENTERPRISESMONOPOLISTIC COMPETITIONMONOPOLYMULTINATIONAL BANKMULTINATIONAL BANKSNATIONAL DEVELOPMENTOPEN ECONOMYOPTIMIZATIONPACIFIC REGIONPOLITICAL ECONOMYPOSITIVE EFFECTSPRIVATE INVESTMENTPRIVATE SECTOR DEVELOPMENTPRODUCT DIFFERENTIATIONPRODUCTION FUNCTIONPRODUCTIVITYPRODUCTIVITY INCREASESPROFITABILITYPUBLIC POLICYRAILRAILROADSRAILWAYRAILWAYSRATE OF RETURNRATE OF RETURN ON CAPITALRATING AGENCIESREAL ESTATEREAL EXCHANGE RATEREFORM PROGRAMREGULATORREGULATORY BARRIERSREGULATORY ENVIRONMENTREGULATORY REGIMEREGULATORY REGIMESREINSURANCERETURN ON INVESTMENTRIDERROADROAD SERVICESSKILLED WORKERSSMALL ENTERPRISESSUPPLY CURVESUPPLY CURVESTARIFF REVENUETAXTELECOMMUNICATIONSTHIRD WORLDTOTAL FACTOR PRODUCTIVITYTOTAL OUTPUTTRADE FLOWSTRADE LIBERALIZATIONTRADE POLICYTRADE SECTORTRADINGTRANSPORTTRANSPORT SERVICESTRANSPORTATIONTRANSPORTATION COSTSTRANSPORTATION FACILITIESTRANSPORTATION NETWORKTRANSPORTATION SERVICESUNIFORM TARIFFSUNIVERSAL ACCESSURUGUAY ROUNDVALUE ADDEDVALUE OF OUTPUTWAGESWEALTHWEALTH CREATIONWORLD INVESTMENT REPORTWORLD TRADEWORLD TRADE ORGANIZATIONWTOWorld Bank10.1596/1813-9450-4544