Services Liberalization in Preferential Trade Arrangements : The Case of Kenya

Balistreri, Edward J.; Tarr, David G.

dc.creator	Balistreri, Edward J.
dc.creator	Tarr, David G.
dc.date	2012-03-19T18:00:18Z
dc.date	2012-03-19T18:00:18Z
dc.date	2011-01-01
dc.date.accessioned	2023-02-17T20:54:24Z
dc.date.available	2023-02-17T20:54:24Z
dc.identifier	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110131090808
dc.identifier	http://hdl.handle.net/10986/3322
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/244227
dc.description	Given the growing importance of commitments to foreign investors in services in regional trade agreements, it is important to develop applied general equilibrium models to assess the impacts of liberalization of barriers to multinational service providers. This paper develops a 55 sector applied general equilibrium model of Kenya with foreign direct investment and Dixit-Stiglitz productivity effects from additional varieties of imperfectly competitive goods or services, and uses the model to assess its regional and multilateral trade options, focusing on commitments to foreign investors in services. To assess the sensitivity of the results to parameter values, the model is executed 30,000 times, and results are reported as confidence intervals of the sample distributions. The analysis reveals that a 50 percent preferential reduction in the ad valorem equivalents of barriers in all business services by Kenya with its African partners would be somewhat beneficial for Kenya. If a preferential agreement with African partners is combined with an agreement with the European Union, the gains would more than triple the gains of an Africa only agreement. Multilateral reduction of services barriers, however, would yield gains about 12 times the gains of an agreement with the Africa region alone. These results suggest that preferential liberalization in the region is a valuable first step, but wider liberalization, with larger partners and liberal rules of origin or multilaterally, will yield much larger gains due to providing access to a much wider set of services providers. The largest gains would come from domestic regulatory reform in services, as this would almost triple the gains of multilateral liberalization.
dc.language	English
dc.relation	Policy Research working paper ; no. WPS 5552
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	ACCOUNTING
dc.subject	ADVANCED COUNTRIES
dc.subject	AGGREGATE EXPORTS
dc.subject	AGRICULTURAL PRODUCTS
dc.subject	AGRICULTURE
dc.subject	AIR
dc.subject	AVERAGE TARIFF
dc.subject	BANK OFFICE
dc.subject	BANKING SERVICES
dc.subject	BASE YEAR
dc.subject	BILATERAL FREE TRADE AGREEMENT
dc.subject	CAPITAL STOCK
dc.subject	CENTRAL ELASTICITIES
dc.subject	CENTRAL ELASTICITY
dc.subject	COLLATERAL
dc.subject	COLLATERAL REQUIREMENTS
dc.subject	COMMON MARKET
dc.subject	COMPETITIVENESS
dc.subject	CONFIDENCE
dc.subject	CONSTANT ELASTICITY OF TRANSFORMATION
dc.subject	CONSTANT RETURNS TO SCALE
dc.subject	COST STRUCTURE
dc.subject	COST STRUCTURES
dc.subject	COUNTRY OF ORIGIN
dc.subject	CREDIT RATING
dc.subject	CUSTOMS UNION
dc.subject	DEBT
dc.subject	DEMAND CURVE
dc.subject	DEMAND CURVES
dc.subject	DEVELOPING COUNTRIES
dc.subject	DEVELOPING COUNTRY
dc.subject	DEVELOPMENT ECONOMICS
dc.subject	DEVELOPMENT INTENSITY
dc.subject	DEVELOPMENT POLICY
dc.subject	DOMESTIC MARKET
dc.subject	DOMESTIC PRODUCTION
dc.subject	DUOPOLY
dc.subject	ECONOMIC GEOGRAPHY
dc.subject	ECONOMIC INTEGRATION
dc.subject	ECONOMIC REFORM
dc.subject	ECONOMIC RESEARCH
dc.subject	ECONOMIC THEORY
dc.subject	ECONOMICS LITERATURE
dc.subject	ECONOMIES OF SCALE
dc.subject	ELASTICITIES
dc.subject	ELASTICITY
dc.subject	ELASTICITY OF DEMAND
dc.subject	ELASTICITY OF SUBSTITUTION
dc.subject	ELASTICITY OF SUPPLY
dc.subject	ELASTICITY VALUES
dc.subject	EQUILIBRIUM
dc.subject	EXCHANGE RATE
dc.subject	EXPORT MARKET
dc.subject	EXPORT MARKETS
dc.subject	EXPORTS
dc.subject	EXTERNALITIES
dc.subject	EXTERNALITY
dc.subject	FACTORS OF PRODUCTION
dc.subject	FEDERAL RESERVE
dc.subject	FEDERAL RESERVE BANK
dc.subject	FINANCIAL SECTOR
dc.subject	FINANCIAL SERVICES
dc.subject	FINANCIAL SUPPORT
dc.subject	FIRM PERFORMANCE
dc.subject	FOREIGN BANKS
dc.subject	FOREIGN DIRECT INVESTMENT
dc.subject	FOREIGN FIRMS
dc.subject	FOREIGN GOODS
dc.subject	FOREIGN INVESTMENT
dc.subject	FOREIGN INVESTORS
dc.subject	FREE ACCESS
dc.subject	FREE TRADE
dc.subject	FREE TRADE AGREEMENT
dc.subject	FREE TRADE AGREEMENTS
dc.subject	FREIGHT
dc.subject	GDP
dc.subject	GENERAL EQUILIBRIUM ANALYSIS
dc.subject	GENERAL EQUILIBRIUM MODEL
dc.subject	GLOBALIZATION
dc.subject	GOVERNMENT REGULATION
dc.subject	HOME COUNTRY
dc.subject	IMPERFECT COMPETITION
dc.subject	INCOME
dc.subject	INCREASING RETURNS
dc.subject	INCREASING RETURNS TO SCALE
dc.subject	INITIATIVE
dc.subject	INSURANCE
dc.subject	INSURANCE MARKET
dc.subject	INTERMEDIATE GOODS
dc.subject	INTERMEDIATE INPUTS
dc.subject	INTERNATIONAL COMPETITIVENESS
dc.subject	INTERNATIONAL ECONOMY
dc.subject	INTERNATIONAL NEGOTIATIONS
dc.subject	INTERNATIONAL TRADE
dc.subject	INVESTMENT BARRIERS
dc.subject	LAWS
dc.subject	LAWYERS
dc.subject	LEGAL SYSTEM
dc.subject	LESS DEVELOPED COUNTRIES
dc.subject	MARGINAL COST
dc.subject	MARGINAL COSTS
dc.subject	MARGINAL REVENUE
dc.subject	MARKET ACCESS
dc.subject	MARKET SHARE
dc.subject	MARKET SHARES
dc.subject	MOBILE BANKING
dc.subject	MONOPOLISTIC COMPETITION
dc.subject	MONOPOLY
dc.subject	MONOPOLY RENTS
dc.subject	MULTILATERAL LIBERALIZATION
dc.subject	MULTILATERAL TRADE
dc.subject	MULTINATIONAL
dc.subject	MULTINATIONAL FIRMS
dc.subject	MULTINATIONALS
dc.subject	MUTUAL RECOGNITION
dc.subject	NATIONAL DEVELOPMENT
dc.subject	NONDISCRIMINATORY BARRIERS
dc.subject	OPEN ECONOMIES
dc.subject	OPEN ECONOMY
dc.subject	OPENNESS
dc.subject	OPTIMAL TARIFFS
dc.subject	PREFERENTIAL
dc.subject	PREFERENTIAL AGREEMENT
dc.subject	PREFERENTIAL AGREEMENTS
dc.subject	PREFERENTIAL REDUCTION
dc.subject	PREFERENTIAL TRADE
dc.subject	PREFERENTIAL TRADE AGREEMENTS
dc.subject	PREFERENTIAL TRADE ARRANGEMENTS
dc.subject	PREFERENTIAL TRADE LIBERALIZATION
dc.subject	PRICE INDEX
dc.subject	PRIMARY FACTORS
dc.subject	PRIVATE SECTOR DEVELOPMENT
dc.subject	PRODUCT DIFFERENTIATION
dc.subject	PRODUCTION FUNCTION
dc.subject	PRODUCTIVITY
dc.subject	PRODUCTIVITY GROWTH
dc.subject	PRODUCTIVITY INCREASES
dc.subject	PUBLIC POLICY
dc.subject	RAIL
dc.subject	RAILWAY
dc.subject	RAILWAYS
dc.subject	REAL ESTATE
dc.subject	REAL EXCHANGE RATE
dc.subject	REDUCTION OF BARRIERS
dc.subject	REFORM PROGRAM
dc.subject	REGIONAL INTEGRATION
dc.subject	REGIONAL TRADE
dc.subject	REGIONAL TRADE AGREEMENTS
dc.subject	REGULATOR
dc.subject	REGULATORY BARRIERS
dc.subject	REGULATORY ENVIRONMENT
dc.subject	REGULATORY REGIME
dc.subject	REGULATORY REGIMES
dc.subject	REINSURANCE
dc.subject	ROAD
dc.subject	RULES OF ORIGIN
dc.subject	SINGLE MARKET
dc.subject	SMALL COUNTRIES
dc.subject	SMALL ENTERPRISES
dc.subject	SUPPLY CURVE
dc.subject	SUPPLY CURVES
dc.subject	TARIFF DATA
dc.subject	TARIFF EQUIVALENCE
dc.subject	TARIFF EQUIVALENTS
dc.subject	TARIFF PREFERENCES
dc.subject	TARIFF RATE
dc.subject	TARIFF RATES
dc.subject	TARIFF REDUCTION
dc.subject	TARIFF REVENUE
dc.subject	TAX
dc.subject	TECHNOLOGY TRANSFER
dc.subject	TELECOMMUNICATIONS
dc.subject	TERMS OF TRADE
dc.subject	TERMS OF TRADE EFFECTS
dc.subject	THIRD WORLD
dc.subject	TOTAL FACTOR PRODUCTIVITY
dc.subject	TRADE DATA
dc.subject	TRADE DIVERSION
dc.subject	TRADE FLOWS
dc.subject	TRADE LIBERALIZATION
dc.subject	TRADE LOSSES
dc.subject	TRADE PARTNERS
dc.subject	TRADE POLICIES
dc.subject	TRADE POLICY
dc.subject	TRANSITION ECONOMIES
dc.subject	TRANSMISSION OF KNOWLEDGE
dc.subject	TRANSPORT
dc.subject	TRANSPORT SERVICES
dc.subject	TRANSPORTATION
dc.subject	TRANSPORTATION COSTS
dc.subject	TRANSPORTATION FACILITIES
dc.subject	TRANSPORTATION NETWORK
dc.subject	TRANSPORTATION SERVICES
dc.subject	TRUE
dc.subject	UNILATERAL LIBERALIZATION
dc.subject	UNILATERAL REFORM
dc.subject	UNSKILLED LABOR
dc.subject	URUGUAY ROUND
dc.subject	VALUE OF IMPORTS
dc.subject	VALUE OF OUTPUT
dc.subject	VARIABLE COSTS
dc.subject	VEHICLE
dc.subject	WEALTH
dc.subject	WEALTH CREATION
dc.subject	WELFARE ECONOMICS
dc.subject	WORLD TRADE
dc.subject	WORLD TRADE ORGANIZATION
dc.subject	WTO
dc.subject	ZERO PROFITS
dc.subject	ZERO TARIFFS
dc.title	Services Liberalization in Preferential Trade Arrangements : The Case of Kenya
dc.type	Publications & Research :: Policy Research Working Paper
dc.coverage	Africa
dc.coverage	Sub-Saharan Africa
dc.coverage	East Africa
dc.coverage	Kenya