Measuring the Cost of Barriers to Trade in Services
Measuring the Cost of Barriers to Trade in Services
This chapter evaluates the cost of barriers to trade liberalization in the services industry using a newly developed model that covers both foreign direct investment and portfolio investment. It explains that general equilibrium effects of removing these barriers. The analysis reveals that liberalization of services trade would contribute more to the world economy than is widely thought and the biggest gains to liberalizing trade in services would originate in the services industry itself.
Keywords: services industry, trade liberalization, foreign direct investment, portfolio investment, world economy
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