Modeling Services Liberalization: The Case of Kenya

This paper employs a 55 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 foreign direct investment in busines...

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Main Authors:	Balistreri, Edward J., Rutherford, Thomas F., Tarr, David G.
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Computable and Other Applied General Equilibrium Models D580 Trade Policy International Trade Organizations F130 Multinational Firms International Business F230 Economics of Regulation L510 Industry Studies: Services: General L800 International Linkages to Development Role of International Organizations O190 Planning Models Planning Policy O210
Online Access:	http://hdl.handle.net/10986/4931

id	okr-10986-4931
recordtype	oai_dc
spelling	okr-10986-49312021-04-23T14:02:20Z Modeling Services Liberalization: The Case of Kenya Balistreri, Edward J. Rutherford, Thomas F. Tarr, David G. Computable and Other Applied General Equilibrium Models D580 Trade Policy International Trade Organizations F130 Multinational Firms International Business F230 Economics of Regulation L510 Industry Studies: Services: General L800 International Linkages to Development Role of International Organizations O190 Planning Models Planning Policy O210 This paper employs a 55 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 foreign direct investment in business services and productivity effects in imperfectly competitive 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 very substantial gains to Kenya from regulatory liberalization in business services, and additional gains from uniform tariffs. The estimated gains increase to 50% of consumption in the long run steady state model, where the impact on the accumulation of capital from an improvement in the productivity of capital is taken into account. Decomposition exercises reveal that the largest gains to Kenya will derive from liberalization of costly regulatory barriers that are non-discriminatory in their impacts between Kenyan and multinational service providers. 2012-03-30T07:30:26Z 2012-03-30T07:30:26Z 2009 Journal Article Economic Modelling 02649993 http://hdl.handle.net/10986/4931 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Kenya
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Computable and Other Applied General Equilibrium Models D580 Trade Policy International Trade Organizations F130 Multinational Firms International Business F230 Economics of Regulation L510 Industry Studies: Services: General L800 International Linkages to Development Role of International Organizations O190 Planning Models Planning Policy O210
spellingShingle	Computable and Other Applied General Equilibrium Models D580 Trade Policy International Trade Organizations F130 Multinational Firms International Business F230 Economics of Regulation L510 Industry Studies: Services: General L800 International Linkages to Development Role of International Organizations O190 Planning Models Planning Policy O210 Balistreri, Edward J. Rutherford, Thomas F. Tarr, David G. Modeling Services Liberalization: The Case of Kenya
geographic_facet	Kenya
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	This paper employs a 55 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 foreign direct investment in business services and productivity effects in imperfectly competitive 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 very substantial gains to Kenya from regulatory liberalization in business services, and additional gains from uniform tariffs. The estimated gains increase to 50% of consumption in the long run steady state model, where the impact on the accumulation of capital from an improvement in the productivity of capital is taken into account. Decomposition exercises reveal that the largest gains to Kenya will derive from liberalization of costly regulatory barriers that are non-discriminatory in their impacts between Kenyan and multinational service providers.
format	Journal Article
author	Balistreri, Edward J. Rutherford, Thomas F. Tarr, David G.
author_facet	Balistreri, Edward J. Rutherford, Thomas F. Tarr, David G.
author_sort	Balistreri, Edward J.
title	Modeling Services Liberalization: The Case of Kenya
title_short	Modeling Services Liberalization: The Case of Kenya
title_full	Modeling Services Liberalization: The Case of Kenya
title_fullStr	Modeling Services Liberalization: The Case of Kenya
title_full_unstemmed	Modeling Services Liberalization: The Case of Kenya
title_sort	modeling services liberalization: the case of kenya
publishDate	2012
url	http://hdl.handle.net/10986/4931
_version_	1764393291288150016

Modeling Services Liberalization: The Case of Kenya

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