CGE Modeling of Market Access in Services
This paper examines how the applied multi-sector computable general equilibrium (CGE) literature has moved into quantication of the impacts of greater market access for services. This includes discussion of multi-sector linkages to the service sect...
Main Authors: | , , |
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Format: | Policy Research Working Paper |
Language: | English en_US |
Published: |
World Bank, Washington, DC
2012
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Subjects: | |
Online Access: | http://documents.worldbank.org/curated/en/2012/06/16428017/cge-modeling-market-access-services http://hdl.handle.net/10986/9324 |
Summary: | This paper examines how the applied
multi-sector computable general equilibrium (CGE) literature
has moved into quantication of the impacts of greater market
access for services. This includes discussion of
multi-sector linkages to the service sector, as well both
measuring barriers to trade and investment (generally with a
mix of firm surveys, price comparisons, and econometrics),
and how changes in these barriers, however measured, have
been implemented in the CGE literature. Three challenges are
highlighted. The first is identification of how trade in
services takes place and how market access is therefore
affected by policy. The second is to find data sufficiently
robust for modeling purposes. The third, linked to the data
problem, is to quantify the barriers to be examined.
Significant progress has been made in modeling foreign
direct investment and linking this to productivity, which
turns out to be important. The paper also provides an
example of modeling productivity linkages to openness and
domestic regulation, with an applied CGE model of Italy.
This illustrates cross-sector linkages and the integration
of economic data and policy measures to define service
sector experiments. Priorities for future research include
better modeling of market structure, the linkages between
sectors and the complementarities between different modes of
supplying services. |
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