The Impact of Liberalizing Barriers to Foreign Direct Investment in Services: The Case of Russian Accession to the World Trade Organization

The Impact of Liberalizing Barriers to Foreign Direct Investment in Services: The Case of Russian Accession to the World Trade Organization

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 mul...

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Bibliographic Details
Main Authors: Jensen, Jesper, Rutherford, Thomas, Tarr, David
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, D.C. 2013
Subjects:
LIBERALIZATION
TRADE BARRIERS
FOREIGN DIRECT INVESTMENTS
SERVICES
WORLD TRADE ORGANIZATION
MARKET ACCESS
TARIFF REDUCTIONS
MULTINATIONAL ENTERPRISES
BUSINESS SERVICES
COMPETITIVENESS
PRODUCTIVITY GROWTH
GOODS
SERVICES DELIVERY
CONSUMPTION PER CAPITA
Online Access:http://documents.worldbank.org/curated/en/2004/09/5114977/impact-liberalizing-barriers-foreign-direct-investment-services-case-russian-accession-world-trade-organization
http://hdl.handle.net/10986/14142
id okr-10986-14142
recordtype oai_dc
spelling okr-10986-141422021-04-23T14:03:21Z The Impact of Liberalizing Barriers to Foreign Direct Investment in Services: The Case of Russian Accession to the World Trade Organization Jensen, Jesper Rutherford, Thomas Tarr, David LIBERALIZATION TRADE BARRIERS FOREIGN DIRECT INVESTMENTS SERVICES WORLD TRADE ORGANIZATION MARKET ACCESS TARIFF REDUCTIONS MULTINATIONAL ENTERPRISES BUSINESS SERVICES COMPETITIVENESS PRODUCTIVITY GROWTH GOODS SERVICES DELIVERY CONSUMPTION PER CAPITA 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. 2013-06-24T15:34:34Z 2013-06-24T15:34:34Z 2004-09 http://documents.worldbank.org/curated/en/2004/09/5114977/impact-liberalizing-barriers-foreign-direct-investment-services-case-russian-accession-world-trade-organization http://hdl.handle.net/10986/14142 English en_US Policy Research Working Paper;No.3391 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia Russian Federation
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic LIBERALIZATION
TRADE BARRIERS
FOREIGN DIRECT INVESTMENTS
SERVICES
WORLD TRADE ORGANIZATION
MARKET ACCESS
TARIFF REDUCTIONS
MULTINATIONAL ENTERPRISES
BUSINESS SERVICES
COMPETITIVENESS
PRODUCTIVITY GROWTH
GOODS
SERVICES DELIVERY
CONSUMPTION PER CAPITA
spellingShingle LIBERALIZATION
TRADE BARRIERS
FOREIGN DIRECT INVESTMENTS
SERVICES
WORLD TRADE ORGANIZATION
MARKET ACCESS
TARIFF REDUCTIONS
MULTINATIONAL ENTERPRISES
BUSINESS SERVICES
COMPETITIVENESS
PRODUCTIVITY GROWTH
GOODS
SERVICES DELIVERY
CONSUMPTION PER CAPITA
Jensen, Jesper
Rutherford, Thomas
Tarr, David
The Impact of Liberalizing Barriers to Foreign Direct Investment in Services: The Case of Russian Accession to the World Trade Organization
geographic_facet Europe and Central Asia
Russian Federation
relation Policy Research Working Paper;No.3391
description 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.
format Publications & Research :: Policy Research Working Paper
author Jensen, Jesper
Rutherford, Thomas
Tarr, David
author_facet Jensen, Jesper
Rutherford, Thomas
Tarr, David
author_sort Jensen, Jesper
title The Impact of Liberalizing Barriers to Foreign Direct Investment in Services: The Case of Russian Accession to the World Trade Organization
title_short The Impact of Liberalizing Barriers to Foreign Direct Investment in Services: The Case of Russian Accession to the World Trade Organization
title_full The Impact of Liberalizing Barriers to Foreign Direct Investment in Services: The Case of Russian Accession to the World Trade Organization
title_fullStr The Impact of Liberalizing Barriers to Foreign Direct Investment in Services: The Case of Russian Accession to the World Trade Organization
title_full_unstemmed The Impact of Liberalizing Barriers to Foreign Direct Investment in Services: The Case of Russian Accession to the World Trade Organization
title_sort impact of liberalizing barriers to foreign direct investment in services: the case of russian accession to the world trade organization
publisher World Bank, Washington, D.C.
publishDate 2013
url http://documents.worldbank.org/curated/en/2004/09/5114977/impact-liberalizing-barriers-foreign-direct-investment-services-case-russian-accession-world-trade-organization
http://hdl.handle.net/10986/14142
_version_ 1764430619644788736

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