Measuring the Barriers to Trade in Financial Services in BRICS Economies: Commitments and Current Practices Under the General Agreement on Trade in Services (GATS)

Abstract

This study aims to measure barriers to trade in financial services1 in BRICS economies including both trade and domestic restrictions based on specific commitments made by the BRICS countries to the General Agreement on Trade in Services (GATS). We constructed indices separately for banking and insurance services and also for overall financial services. We found that in insurance services, Russia is the most open followed by China, Brazil, South Africa and India. Regarding banking services, we observed that Brazil appears to be the most open followed by China, Russia, South Africa and India. For overall financial services, the study reveals that China is the most open followed by Brazil, Russia, South Africa and India. More interestingly, on the basis of commitments, China is the most open in financial services among the BRICS countries, and India the most restricted. However, in practice, Brazil has come out to be more open in financial services among the BRICS countries followed by South Africa which is in the fourth position in term of commitments. Russia is in the third position in practice but was second in terms of commitments. Surprisingly, China, which is at the first place in terms of opening financial services on the basis of commitments, is in the fourth position on the basis of practice. India remains on the bottom both on the basis of commitments and in practice.

Internationalization of Service SMEs: Perspectives from Canadian SMEs Internationalizing in Asia

“…While our study examines the context of the high technology energy sector (oil and gas sector), future research may examine other service industries such as banking, software, hotels, etc. (Khatun et al, 2019). Finally, while we have suggested the role of policy in the home country that influences formal institutional support for service SME internationalization, future research may examine the role of informal institutions of the home country in the internationalization processes of service SMEs (Muralidharan & Pathak, 2017).…”

“…This study contributes to the literature on Small and Medium-Sized Enterprise (SME) internationalization by examining how SMEs in the service sector overcome challenges of internationalizing in countries at great institutional distances. Extant research has shown that there are a number of restrictions to trade in services in developing economies such as Brazil, Russia, India, China and South Africa (Khatun, Banik, & Bhaumik, 2019) and particularly in Asia (Banik & Bhaumik, 2014). We examine the knowledge (Stoian, Dimitratos, & Plakoyiannaki, 2018) requirements for developed-country service SMEs to expand beyond their home region into Asian countries (Banik & Bhaumik, 2014; Luo, 1999).…”