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GTAP Resource #2000

"Opening up services markets within Europe: the role of foreign establishments"
by Lejour, Arjan, Hugo Rojas-Romagosa and Gerard Verweij

In services the activities of foreign affiliates often exceed the value of cross-border trade. A complete analysis of services liberalisation therefore requires the modelling of FDI. This paper presents the modelling of FDI in our CGE model WorldScan after having discussed the scarce literature. Then we apply the model to assess the proposals of the European Commission to open up services markets. FDI in services could increase by 20% to 35%. However, the role of foreign capital in providing services is until now limited. Our assessment suggests that GDP in Europe could increase up to 0.3%. If foreign capital also increases overall productivity in services the effects could be substantially higher.

Resource Details (Export Citation) GTAP Keywords
Category: 2006 Conference Paper
Status: Published
By/In: Economic Modeling 25, p 1022-1039
Date: 2008
Created: Lejour, A. (4/28/2006)
Updated: Lejour, A. (9/3/2008)
Visits: 2,920
No keywords have been specified.

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