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GTAP Resources: Resource Display

GTAP Resource #3143

"Commitment to Reform and the Success of Service Trade Liberalization"
by Konan, Denise Eby and Ari Van Assche


Abstract
In this paper, we analyze how a country’s commitment to regulatory reform affects the success of its service trade liberalization. For this purpose, we set up a computational general equilibrium (CGE) model with a single imperfectly competitive service sector that in the benchmark is dominated by a domestic monopolist. Service trade liberalization is modelled as a two-stage game with incomplete information. In stage 1, a single license is allocated to a foreign service provider. In stage 2, the government chooses the market structure between the foreign entrant and domestic incumbent. In such a setting, the effect of service trade liberalization depends on three factors: (i) the license allocation mechanism; (ii) the adopted market structure; and (iii) the government’s perceived commitment to reform. We apply our model to a CGE model for Tunisia to estimate the magnitudes of these effects.


Resource Details (Export Citation) GTAP Keywords
Category: 2009 Conference Paper
Status: Published
By/In: Presented at the 12th Annual Conference on Global Economic Analysis, Santiago, Chile
Date: 2009
Version:
Created: Konan, D. (4/20/2009)
Updated: Konan, D. (4/20/2009)
Visits: 2,477
- Trade in services
- Middle East


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