Financial Liberalization under the WTO and Its Relationship with the Macro Economy

Abstract

Note: This paper computes these scores based on the classification summarized in the WTO document (JOB[03]/195), which describes frequently-used categories of natural persons included under mode 4 in the horizontal section of members' schedules of specific commitments. The four main categories are intracorporate transferees (ICT), business visitors (BV) and service salespersons (SS), contractual service suppliers (CSS) and other categories. CSS includes employees of juridical persons and independent professionals. Other categories contain graduate trainees and spouses and partners of ICT.

The Effect of Asean Financial Services Liberalisation on Economic Growth

“…Furthermore, population growth, gross capital formation and inflation are also included as control variables. The inclusion of the control variables is based on the research by Hapsari & MacLaren (2012) and Wang et al (2008). According to previous research, the liberalisation index, population growth, and gross capital formation positively relate to GDP growth.…”

“…This research is significant for evaluating the AFAS commitment, as it highlights the challenges in distinguishing whether the observed impact stems from the AFAS commitment itself or from GATS. Wang et al (2008) investigated the effects of financial liberalisation under WTO to the economy. Similar to Mattoo et al (2006), the study begins by addressing the challenges associated with quantifying services trade liberalisation, given the non-tariff nature of many barriers in the services sector.…”

“…Similar to Mattoo et al (2006), the study begins by addressing the challenges associated with quantifying services trade liberalisation, given the non-tariff nature of many barriers in the services sector. However, Wang, Shen & Liang (2008) constructed the liberalisation index solely based on the GATS commitment, with a more profound scoring method than Mattoo, Rathindran & Subramanian (2006). The liberalisation index developed by Wang et al (2008) was based on Mattoo (1998) but with modifications to include mode four transactions in the index construction.…”

“…However, Wang, Shen & Liang (2008) constructed the liberalisation index solely based on the GATS commitment, with a more profound scoring method than Mattoo, Rathindran & Subramanian (2006). The liberalisation index developed by Wang et al (2008) was based on Mattoo (1998) but with modifications to include mode four transactions in the index construction. In their model, they indulge different scenarios about the sector being liberalised.…”