What Gains from Liberalisation of Trade in Service: Lessons from Modelling and Political Economy
Mardi | 2009-11-24 Thierry MONTALIEU – Isabelle RABAUD – Thierry BAUDASSE Theoretically, welfare gains from liberalisation of trade in services arise from falling pricesand technology transfers from foreign firms. Empirically, substantial gains are only reachedwhen entry of foreign firms is widened. These results rest upon three strong assumptions.First, substitution elasticities need to be important, which is not the case empirically foraggregated service data. Second, information is required on the breakdown of the initial pricewedgebetween rent and inefficient technology. Third, wage […]