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A Handbook of International Trade in Services$
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Aaditya Mattoo, Robert M. Stern, and Gianni Zanini

Print publication date: 2007

Print ISBN-13: 9780199235216

Published to Oxford Scholarship Online: January 2008

DOI: 10.1093/acprof:oso/9780199235216.001.0001

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Empirical Analysis of Barriers to International Services Transactions and the Consequences of Liberalization

Empirical Analysis of Barriers to International Services Transactions and the Consequences of Liberalization

Chapter:
(p.169) 5 Empirical Analysis of Barriers to International Services Transactions and the Consequences of Liberalization
Source:
A Handbook of International Trade in Services
Author(s):

Alan V. Deardorff

Robert M. Stern (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199235216.003.0005

This chapter reviews methods used to identify and quantify barriers to international trade in services. Barriers typically take the form of regulations that either restrict supply or make it more costly. The economic impact of barriers can, in principle, be quantified as a ‘tariff equivalent’, defined as the percentage tax on foreign suppliers that would have the same effect on the domestic market for the service as is caused by the barrier. Barriers to trade in services can be those that restrict entry of firms versus those that affect firms' operations, and those that discriminate against foreign-service providers versus those that do not. The measurement of services barriers are either direct or indirect. Direct measurement involves documenting barriers that are known to exist, either by extracting information about them from government documents or by questioning those market participants who confront them. Indirect measurement attempts to infer the presence of barriers from their market effects, much as non-tariff barriers on trade in goods are often inferred from price differences across borders. Approaches to measuring services barriers are illustrated by citing a number of studies that have been carried out. The chapter concludes with a presentation of guideline principles and recommended procedures for measuring services barriers and assessing the consequences of their liberalization.

Keywords:   direct measurement, indirect measurement, services regulations, tariff equivalent, discrimination, liberalization, non-tariff barriers, Russia, WTO accession

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