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GTAP Resource #2444

"Modeling Services Liberalization: The Case of Kenya"
by Balistreri, Edward J., Thomas Rutherford and David G. Tarr

In this paper we employ a 50 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. The ad valorem equivalent of barriers to foreign direct investment have been estimated based on detailed questionnaires completed by specialists in Kenya. We estimate that Kenya will gain about 9.3% of the value of Kenyan consumption in the medium run (or 8.8% of GDP) from a full reform package that also includes uniform tariffs. The gains increase to 12.1% of consumption in the long run steady state model. Decomposition exercises reveal that the largest gains to Kenya will derive from liberalization of regulatory barriers against its domestic service providers.

Resource Details (Export Citation) GTAP Keywords
Category: 2007 Conference Paper
Status: Published
By/In: Presented at the 10th Annual Conference on Global Economic Analysis, Purdue University, USA
Date: 2007
Version: 1
Created: Tarr, D. (4/27/2007)
Updated: Batta, G. (4/30/2007)
Visits: 3,235
- Trade in services
- Economic development
- Foreign direct investment
- Technological change
- Africa (East)

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