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GTAP Resource #890

"Liberalizing Services Trade in APEC: A General Equilibrium Analysis with Imperfect Competition"
by Benjamin, Nancy and Xinshen Diao

The paper studies services trade liberalization in APEC using a global multi-country, multi-sector applied general equilibrium model with an imperfectly competitive service sector. Reducing the service sectors nontariff barriers is modeled by eliminating the possibility for oligopolistic firms to price-discriminate between client countries within APEC and lowering the fixed costs of the firms doing service exporting business. The results suggest that services trade liberalization reinforces existing sectoral trade balances. Increase in demand for intermediate services tends to reinforce rather than counteract the role of primary factors in determining sectoral comparative advantage. The Western APEC members received the greatest welfare gains from services trade liberalization, while the developing economies gained more if only tariffs were eliminated.

Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
Status: Published
By/In: Pacific Economic Review
Date: 2000
Version: 5(1)
Created: Diao, X. (11/14/2001)
Updated: Dimaranan, B. (11/15/2001)
Visits: 2,113
No keywords have been specified.

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