Regulation, market structure and service trade liberalization

Abstract

CIRANOLe CIRANO est un organisme sans but lucratif constitué en vertu de la Loi des compagnies du Québec. Le

Modeling Public Policies in Latin America and the Caribbean

“…Most of the literature assumes that the liberalization of the trade in services would generate a competitive market structure. In contrast, Konan and Van Assche (2006) model the liberalization of telecommunications in Tunisia under the assumption that there will be one sole entrant. They thus define alternative counterfactual scenarios simulating: (i) that the installed firm…”

“…Most of the literature assumes that the liberalization of the trade in servic generate a competitive market structure. In contrast, Konan and Van Assche (2006) m liberalization of telecommunications in Tunisia under the assumption that there will be entrant. They thus define alternative counterfactual scenarios simulating: (i) that the inst and the entrant compete à la Cournot or establish a cartel, (ii) that the firms confront costs or alternative costs that differ from the two firms, and (iii) that the entrant cou remittances of gains or maintain them in the country where the investment is being mad and others (2003) have already explored this last aspect in the case of regulated public showing the choice of alternative regulation mechanisms that influence the performan trade balance.…”

CGE Modeling of Market Access in Services

“…28 The papers by Konan and Van Assche (2007), Balistreri and Tarr (2011) and Jensen and Tarr (2011) among others discussed above illustrate clearly that preferential (partial) liberalization can be welfare diminishing if market structures are such as to generate significant rents and the partial reforms result in transfer of such rents to foreign firms.…”

“…This approach has grown from an extension in Francois (1999) to a now standard feature of the GTAP model, following Hertel, Walmsley and Itakura (2001). It has featured in the joint Canadan government and EC (2008) joint study on a EU-Canada Trade Agreement, as well as the ECORYS (2009) Konan and Maskus, 2006;Konan and Kim, 2005;and Konan and Van Assche, 2007. 21 For example the EC has sponsored studies on NTMs in services in North America and Japan. These include ECORYS (2009) and Sunesen et al (2009), as well as several earlier path-breaking Australian studies, focused on the Asia Pacific region.…”

“…See also Inklaar, Timmer and van Ark, 2008. 23 Jensen and Tarr (2011) and Balistreri and Tarr (2011) find exactly this type of result in their modeling of liberalization in Armenia and Kenya, respectively, where the potential gains for Armenia from preferential liberalization with the EU proves lower if Armenians lose rents from barriers against foreign service-providers that are then shifted abroad. See also Konan and van Assche (2007) for an analysis of telecommunications in Tunisia.…”