The Implications of WTO and GATS for the Banking Sector in Africa

Murinde, Victor; Ryan, Cillian

doi:10.1111/1467-9701.00517

Cited by 10 publications

(4 citation statements)

References 14 publications

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“…Such studies are important inputs to the international negotiation and domestic policy reform process by providing an assessment of the possible impacts of liberalization of services trade through different modes. 30 Analyses of trade in financial services and growth include Francois (1995), Barth, Caprio and Levine (2006), Murinde and Ryan (2003), Claessens (2003), and the contributions to (of) Claessens and Jansen (2000). This literature tends to find a positive link between financial sector openness and economic growth performance.…”

Section: Prospective Studiesmentioning

confidence: 99%

Services Trade and Policy

François

Hoekman

2010

Journal of Economic Literature

543

410

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Services Trade and Policy Joseph Francois University of Linz and CEPR Bernard Hoekman World Bank and CEPR December 2009Abstract: Since the mid-1980s a substantial body of research has taken shape on trade in services. Much of this is inspired by the WTO and regional trade agreements. However, an increasing number of papers focus on the impacts of unilateral services sector liberalization. The literature touches on important linkages between trade and FDI in services and the general pattern of productivity growth and economic development. This paper surveys the literature on services trade, focusing on contributions that investigate the determinants of international trade and investment in services, the potential gains from greater trade, and efforts to cooperate to achieve such liberalization through trade agreements. There is increasing evidence that services liberalization is a major potential source of gains in economic performance, including productivity in manufacturing and the coordination of activities both between and within firms. The performance of service sectors, and thus services policies, may also be an important determinant of trade volumes, the distributional effects of trade, and overall patterns of economic growth and development. At the same time, services trade is also a source of increasing political unease about the impacts of globalization on labor markets, linked to worries about offshoring and the potential pressure this places on wages in high income countries.JEL codes: F1, F2, F5, L80

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Section: Prospective Studiesmentioning

confidence: 99%

Services Trade and Policy

François

Hoekman

2010

Journal of Economic Literature

543

410

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“…Based on their assessment, Murinde and Ryan (2003) The reduction in the regulatory barriers on the provision of services in Kenya, reduces the cost of providing services in Kenya for both Kenyan and multinational service providers. This increases profitability for the provision of services in Kenya, thereby inducing new entry by both domestic and multinational service providers until zero profits are restored.…”

Section: Aggregate Effects 26mentioning

confidence: 99%

What Determines Whether Preferential Liberalization of Barriers against Foreign Investors in Services Are Beneficial or Immizerising: Application to the Case of Kenya

Balistreri

Jensen²,

Tarr

2015

Economics

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Despite the fact that many modern preferential trade agreements include commitments to foreign investors in imperfectly competitive services sectors, the literature has not established conditions under which these agreements are beneficial or harmful. The authors fill that void by developing a model with monopolistic competition and foreign direct investment in services with Dixit-Stiglitz endogenous productivity effects from additional varieties. They specify a numerical model, with probability distributions of all parameters. The model is executed 30,000 times, and results are reported as probability of an outcome, based on the sample distribution. In order to ground the results in reality, the authors apply the model to Kenya. They show that preferential commitments in services could be immizerising. Losses are more likely the greater the share of initial rent capture on the services barriers in the home country and the more technologically advanced are the excluded regions relative to the partner region. JEL F12 F13 F14 F15 F23 F47 C68 L16Keywords Immizerising services liberalization; preferential liberalization; multinationals; monopolistic competition; foreign direct investment; endogenous productivity effects Open-Assessment E-Journal, 9 (2015-42): 1-134. http:// dx.doi.org/10.5018/economics-ejournal.ja. www.economics-ejournal.org 2 Authors IntroductionSince the early 1990s, regional trade agreements have surged; 283 have been notified to the WTO and were in force as of February 2010. 1 Commitments to foreign investors in services are now key aspects of modern FTA agreements negotiated with the EU and the US, and in some other agreements. The literature, however, contains neither analytical nor numerical results on the general equilibrium welfare impacts of preferential commitments to foreign investors in the presence of imperfect competition in services sectors. 2 Given that commitments to foreign investors in services sectors (many of which are imperfectly competitive) are key aspects of modern FTA agreements, the objective of this paper is to determine if such agreements can be immizerising, and the conditions that make it more or less likely the agreements are beneficial. Further, we develop a numerical general equilibrium framework to assess these agreements in practice. It is well known that the welfare effects of preferential trade in goods are ambiguous, with welfare losses possible in perfectly competitive models due to the loss of tariff revenue on the decline in imports from excluded countries. In services, however, there typically is no tax revenue on barriers to foreign investors, leading some experts to suggest that gains from preferential liberalization of services are much more likely than in goods (Mattoo and Fink, 2002). But Mattoo and Fink acknowledge that if the home country is capturing rents from the barriers, these rents play the same role in preferential liberalization of services as tariffs in goods, leading to possible losses. 3 And despite the fact that key sectors ...

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“…75 GATS does not, in principle, oblige a Member to allow international capital mobility. 76 It is to be noted that liberalization of capital movements is distinct from -but closely related to -liberalization of trade in financial services. 77 For example, provision of financial information by foreign financial organizations is entirely unrelated to capital account liberalization.…”

Section: Gats On Capital Movementsmentioning

confidence: 99%

Ethiopia’s WTO Accession and Financial Services Liberalization: Striking the Balance between Trade Liberalization and Domestic Policy Space

Kassahun¹

2013

Miz Law Rev

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This article examines some of the main provisions of the General Agreement on Trade in Services (GATS) and the Annex on Financial Services to evaluate its impact on domestic financial regulation and macroeconomic policy. In particular, it analyzes whether Ethiopia can -upon accession and within the WTO's GATS framework -achieve the objective of liberalizing international trade in financial services while maintaining adequate domestic regulatory institutions and the normative framework needed in this regard. The article investigates whether GATS provides a flexible framework for Ethiopia to negotiate liberalization commitments while at the same time preserving a sufficient level of domestic regulatory space to achieve financial and economic stability.

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The Implications of WTO and GATS for the Banking Sector in Africa

Cited by 10 publications

References 14 publications

Services Trade and Policy

Services Trade and Policy

What Determines Whether Preferential Liberalization of Barriers against Foreign Investors in Services Are Beneficial or Immizerising: Application to the Case of Kenya

Ethiopia’s WTO Accession and Financial Services Liberalization: Striking the Balance between Trade Liberalization and Domestic Policy Space

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