Download or read book Regional Impacts of Liberalization of Barriers Against Foreign Direct Investment in Services written by Thomas F. Rutherford and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Impact of Liberalizing Barriers to Foreign Direct Investment in Services written by Jesper Jensen and published by World Bank Publications. This book was released on 2004 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: The authors estimate that Russia will gain about 7.2 percent of the value of Russian consumption in the medium run from WTO accession and up to 24 percent in the long run. They estimate that the largest gains to Russia will derive from liberalization of barriers against multinational service providers. Piecemeal and systematic sensitivity analysis shows that their results are robust."--Abstract.

Download or read book International Friction and Cooperation in High Technology Development and Trade written by National Research Council and published by National Academies Press. This book was released on 1997-10-10 with total page 451 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Impact of Liberalizing Barriers to Foreign Direct Investment in Services written by Jesper Jensen and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The authors use a computable general equilibrium model of the Russian economy to assess the impact of accession to the World Trade Organization (WTO), which encompasses improved market access, tariff reduction, and reduction of barriers against multinational service providers. They assume that foreign direct investment in business services is necessary for multinationals to compete well with Russian business service providers, but cross-border service provision is also present. The model incorporates productivity effects in both goods and services markets endogenously through a Dixit-Stiglitz framework. As a result, the estimated gains from WTO accession are much larger than would be obtained from a typical model with perfect competition. The ad valorem equivalent of barriers to foreign direct investment have been estimated based on detailed questionnaires completed by specialized research institutes in Russia. The authors estimate that Russia will gain about 7.2 percent of the value of Russian consumption in the medium run from WTO accession and up to 24 percent in the long run. They estimate that the largest gains to Russia will derive from liberalization of barriers against multinational service providers. Piecemeal and systematic sensitivity analysis shows that their results are robust.

Download or read book The Impact of Liberalizing Barriers to Foreign Direct Investment in Services written by Jesper Jensen and published by . This book was released on 2008 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper a computable general equilibrium model of the Russian economy is used to assess the impact of accession to the World Trade Organization (WTO), which encompasses improved market access, Russian tariff reduction, and reduction of barriers against multinational service providers. It is assumed that foreign direct investment in business services is necessary for multinationals to compete well with Russian business services providers, but cross-border service provision is also present. The model incorporates productivity effects in both goods and services markets endogenously, through a Dixit-Stiglitz framework. It is estimated that Russia will gain about 7.2% of the value of Russian consumption in the medium term from WTO accession and up to 24% in the long run. It is also estimated that the largest gains to Russia will derive from liberalization of barriers against multinational service providers. Piecemeal and systematic sensitivity analysis shows that the results are robust.

Download or read book Liberalising Foreign Direct Investment Policies in the APEC Region written by Bernie Bishop and published by Routledge. This book was released on 2018-05-08 with total page 299 pages. Available in PDF, EPUB and Kindle. Book excerpt: This title was first published in 2001. This work is a response to criticisms that investment liberalization in the APEC region is not moving quickly enough. It commences with a historical overview of APEC's process for investment liberalization and a description of current foreign direct investment policies for each of the APEC economies. It then argues that there are significant constraints to further liberalization arising from economic development concerns in the developing countries and political considerations in both developed and developing countries in the region. It also suggests that a truly liberalized investment environment would involve the removal of investment incentives. Again, there are political and institutional reasons that make this difficult. With several suggestions for further research that should better inform policy makers, this is an informative insight into the complex issues involved in the liberalization process in the APEC region.

Download or read book Quantifying the Impact of Services Liberalization in a Developing Country written by Denise Eby Konan and published by World Bank Publications. This book was released on 2004 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: The 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.

Download or read book The Impact on Russia of WTO Accession and the Doha Agenda written by Thomas Fox Rutherford and published by World Bank Publications. This book was released on 2012 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: Taking price changes from the Global Trade Analysis Project (GTAP) model of world trade, the authors use a small open economy computable general equilibrium comparative static model of the Russian economy to assess the impact of global free trade and a successful completion of the Doha Agenda on the Russian economy, and especially on the poor. They compare those results with the impact of Russian accession to the World Trade Organization (WTO) on income distribution and the poor. The model incorporates all 55,000 households from the Russian Household Budget Survey as "real" households. Crucially, given the importance of foreign direct investment (FDI) liberalization as part of Russian WTO accession, the authors also include FDI and Dixit-Stiglitz endogenous productivity effects from liberalization of import barriers against goods and FDI in services. The authors estimate that Russian WTO accession in the medium run will result in gains averaged over all Russian households equal to 7.3 percent of Russian consumption (with a standard deviation of 2.2 percent of consumption), with virtually all households gaining. They find that global free trade would result in a weighted average gain to households in Russia of 0.2 percent of consumption, with a standard deviation of 0.2 percent of consumption, while a successful completion of the Doha Development Agenda would result in a weighted average gain to households of -0.3 percent of consumption (with a standard deviation of 0.2 percent of consumption). Russia, as a net food importer, loses from subsidy elimination, and the gains to Russia from tariff cuts in other countries are too small to offset these losses. The results strongly support the view that Russia's own liberalization is more important than improvements in market access as a result of reforms in tariffs or subsidies in the rest of the world. Foremost among the own reforms is liberalization of barriers against FDI in business services.

Download or read book A Handbook of International Trade in Services written by Aaditya Mattoo and published by OUP Oxford. This book was released on 2007-11-22 with total page 680 pages. Available in PDF, EPUB and Kindle. Book excerpt: International trade and investment in services are an increasingly important part of global commerce. Advances in information and telecommunication technologies have expanded the scope of services that can be traded cross-border. Many countries now allow foreign investment in newly privatized and competitive markets for key infrastructure services, such as energy, telecommunications, and transport. More and more people are travelling abroad to consume tourism, education, and medical services, and to supply services ranging from construction to software development. In fact, services are the fastest growing components of the global economy, and trade and foreign direct investment (FDI) in services have grown faster than in goods over the past decade and a half. International transactions, however, continue to be impeded by policy barriers, especially to foreign investment and the movement of service-providing individuals. Developing countries in particular are likely to benefit significantly from further domestic liberalization and the elimination of barriers to their exports. In many instances, income gains from a reduction in protection to services may be far greater than from trade liberalization in goods. In light of the increasing importance of international trade in services and the inclusion of services issues on the agendas of the multilateral, regional and bilateral trade negotiations, there is an obvious need to understand the economic implications of services trade and liberalization. A Handbook of International Trade in Services provides a comprehensive introduction to the subject, making it an essential reference for trade officials, policy advisors, analysts, academics, and students. Beginning with an overview on the key issues in trade in services and discussion of the GATS, the book then looks at trade negotiations in the service sector, the barriers to trade in services, and concludes by looking at a number of specific service sectors, such as financial services, e-commerce, health services, and the temporary movement of workers.

Download or read book Services Liberalization in Preferential Trade Arrangements written by Edward J. Balistreri and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Impact on Russia of WTO Accession and the Doha Agenda written by Thomas F. Rutherford and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Taking price changes from the Global Trade Analysis Project (GTAP) model of world trade, the authors use a small open economy computable general equilibrium comparative static model of the Russian economy to assess the impact of global free trade and a successful completion of the Doha Agenda on the Russian economy, and especially on the poor. They compare those results with the impact of Russian accession to the World Trade Organization (WTO) on income distribution and the poor. The model incorporates all 55,000 households from the Russian Household Budget Survey as real households. Crucially, given the importance of foreign direct investment (FDI) liberalization as part of Russian WTO accession, the authors also include FDI and Dixit-Stiglitz endogenous productivity effects from liberalization of import barriers against goods and FDI in services. The authors estimate that Russian WTO accession in the medium run will result in gains averaged over all Russian households equal to 7.3 percent of Russian consumption (with a standard deviation of 2.2 percent of consumption), with virtually all households gaining. They find that global free trade would result in a weighted average gain to households in Russia of 0.2 percent of consumption, with a standard deviation of 0.2 percent of consumption, while a successful completion of the Doha Development Agenda would result in a weighted average gain to households of -0.3 percent of consumption (with a standard deviation of 0.2 percent of consumption). Russia, as a net food importer, loses from subsidy elimination, and the gains to Russia from tariff cuts in other countries are too small to offset these losses. The results strongly support the view that Russia's own liberalization is more important than improvements in market access as a result of reforms in tariffs or subsidies in the rest of the world. Foremost among the own reforms is liberalization of barriers against FDI in business services.

Download or read book The Effects of East Asian Free Trade Agreements on Foreign Direct Investment written by Qiaomin Li and published by . This book was released on 2015 with total page 165 pages. Available in PDF, EPUB and Kindle. Book excerpt: The proliferation of Free Trade Agreements (FTAs) in East Asia has triggered extensive studies about the economic effects of FTAs. With trade and welfare effects as the focuses of many studies, the Foreign Direct Investment (FDI) effect has attracted relatively less attention. Given that attracting FDI is a common goal of FTAs, it is important to fill this gap. This thesis fills the gap by assessing the FDI effects of ASEAN-China Free Trade Agreement (ACFTA) through econometric models and by simulating the FDI effect of Regional Comprehensive Economic Partnership (RCEP) through a Computable General Equilibrium (CGE) model. I summarized three effects of Free Trade Agreements (FTAs) on FDI from the literature regarding theoretical links between trade liberalization and FDI. First is the vertical fragmentation effect. Reduction in trade costs of intermediate goods increases the incentive for multinationals to split production processes into different countries to take advantage of favorable conditions in each. Thus, vertical FDI would increase after FTA. Second is the market expansion effect. The preferential access to partner countries expands the domestic market to partners', increasing the attractiveness of member countries to marketseeking FDI. Third is the plant rationalization effect. Reduction in trade costs encourages firms to choose trade rather than FDI to supply partners' markets. Thus, trade substitution may decrease FDI. ACFTA is the first important free trade agreement for China and a significant development in East Asian integration. The study of ACFTA has two steps. First, I adopted an econometric model to examine the overall FDI effect of ACFTA. The model is based on the knowledge-capital theory of FDI and captures third country effects, which enables it to explain not only horizontal and vertical FDI, but also complex FDI such as export platform and complex vertical FDI. The model has been found to suit FDI study in East Asia. ACFTA shows a positive and significant FDI-promoting impact, indicating that the market expansion and vertical fragmentation effects dominate the FDI-decreasing effect of plant rationalization. I then conducted a more detailed study about ACFTA, aiming to explore the mechanism of how the agreement positively affected FDI. The target of this study is to detect the two FDI-promoting effects (the market expansion and vertical fragmentation effects) of ACFTA. This is the first time to examine these individual effects of an FTA and there is no existing methodology. Innovatively, I adopted an FDI industry model to test different effects of ACFTA on various industry sectors. The approach is adopted based on the two effects' definitions. The definition of vertical fragmentation effect suggests that it would mainly affect pro-fragmentation sectors, while the definition of market expansion effect indicates that it would mainly affect export-increasing sectors. The FDI effects of ACFTA on these sectors reflect the two corresponding effects. These sectors are identified through analyses of total trade, and trade in intermediate goods. The FDI industry model shows that both the market expansion and vertical fragmentation effects exist in ACFTA, with the latter a little stronger on China. The effects of ACFTA mainly come from trade liberalization in goods but not services. Given the big share of services in FDI, it is important to include services liberalization in assessing the effects of FTAs on FDI. With this target, I developed a CGE model to simulate the potential effect of RCEP, which is expected to include liberalization of services trade. The CGE model utilizes the firm heterogeneity framework in analyzing FDI effects. The model incorporates FDI by sourcing capital to home region and differentiating firms by ownership. Given the importance of services to FDI, the model carefully deals with services barriers. Based on empirical evidence, the services barriers are modeled as tax equivalents that raise costs to imports and generate rents to incumbent firms. Simulation results show that RCEP can promote FDI to China, and services dominate the FDI increase. Specifically, comprehensive liberalization on trade in goods and services with a more than 50% reduction in services barriers in China can promote FDI flow to China by US$2.8 billion and increase its welfare by US96 billion. If RCEP can help member countries to improve their business environments so as to reduce fixed trading costs, the gains of China in FDI and welfare would be even bigger. In summary, this thesis examines the FDI effects of ACFTA through econometric studies and experiments with RCEP through a CGE model. Both ACFTA and RCEP are found to promote FDI to member countries. While the econometric finding of ACFTA suggests a significant FDI effect of goods trade liberalization, the CGE simulation results of RCEP show that the effect of services liberalization is much stronger.

Download or read book Services Liberalization in Preferential Trade Arrangements written by Edward J. Balistreri and published by . This book was released on 2017 with total page 135 pages. Available in PDF, EPUB and Kindle. Book excerpt: Given the growing importance of commitments to foreign investors in services in regional trade agreements, it is important to develop applied general equilibrium models to assess the impacts of liberalization of barriers to multinational service providers. This paper develops a 55 sector applied general equilibrium model of Kenya with foreign direct investment and Dixit-Stiglitz productivity effects from additional varieties of imperfectly competitive goods or services, and uses the model to assess its regional and multilateral trade options, focusing on commitments to foreign investors in services. To assess the sensitivity of the results to parameter values, the model is executed 30,000 times, and results are reported as confidence intervals of the sample distributions. The analysis reveals that a 50 percent preferential reduction in the ad valorem equivalents of barriers in all business services by Kenya with its African partners would be somewhat beneficial for Kenya. If a preferential agreement with African partners is combined with an agreement with the European Union, the gains would more than triple the gains of an Africa only agreement. Multilateral reduction of services barriers, however, would yield gains about 12 times the gains of an agreement with the Africa region alone. These results suggest that preferential liberalization in the region is a valuable first step, but wider liberalization, with larger partners and liberal rules of origin or multilaterally, will yield much larger gains due to providing access to a much wider set of services providers. The largest gains would come from domestic regulatory reform in services, as this would almost triple the gains of multilateral liberalization.

Download or read book Foreign Direct Investment and Regional Trade Liberalization written by Yong-Shik Lee and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Promotion of foreign direct investment (FDI) and trade liberalization on both global and regional levels has been considered to be beneficial for the economic development of developing countries. Current WTO rules support regional trade liberalization and prohibit certain trade-related investment measures by national governments, even though these are important policy tools for economic development. This paper critiques this conventional support of FDI and regional trade liberalization through free trade agreements, and proposes regulatory changes that will balance the need for investment measures that promote development interests and the call for FDI and trade liberalization. The paper also discusses the impact of the recent proliferation of regional trade agreements on the multilateral trading system in the development context.

Download or read book Foreign Direct Investment in South Asia written by Pravakar Sahoo and published by Springer Science & Business Media. This book was released on 2013-10-01 with total page 378 pages. Available in PDF, EPUB and Kindle. Book excerpt: During the 1990s, the governments of South Asian countries acted as ‘facilitators’ to attract FDI. As a result, the inflow of FDI increased. However, to become an attractive FDI destination as China, Singapore, or Brazil, South Asia has to improve the local conditions of doing business. This book, based on research that blends theory, empirical evidence, and policy, asks and attempts to answer a few core questions relevant to FDI policy in South Asian countries: Which major reforms have succeeded? What are the factors that influence FDI inflows? What has been the impact of FDI on macroeconomic performance? Which policy priorities/reforms needed to boost FDI are pending? These questions and answers should interest policy makers, academics, and all those interested in FDI in the South Asian region and in India, Pakistan, Bangladesh, Sri Lanka and Pakistan.

Download or read book Trade and Investment Liberalisation in APEC written by Karen Schneider and published by . This book was released on 2000 with total page 140 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Regional Impacts of Russia s Accession to the World Trade Organization written by Thomas Fox Rutherford and published by World Bank Publications. This book was released on with total page 83 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper we develop a computable general equilibrium model of the regions of Russia to assess the impact of accession to the World Trade Organization (WTO) on the regions of Russia. We estimate that the average gain in welfare as a percentage of consumption for the whole country is 7.8 percent (or 4.3 percent of consumption); we estimate that three regions will gain considerably more: Northwest (11.2 percent), St. Petersburg (10.6 percent) and Far East (9.7 percent). We estimate that the Urals will gain only 6.2 percent of consumption, considerably less than the national average. The principal explanation in our central analysis for the differences across regions is the ability of the different regions to benefit from a reduction in barriers against foreign direct investment. The three regions with the largest welfare gains are clearly the regions with the estimated largest shares of multinational investment. But the Urals has attracted relatively little FDI in the service sectors. An additional reason for differences across regions is quantified in our sensitivity analysis: regions may gain more from WTO accession if they can succeed in creating a good investment climate.