Putting Services and Foreign Direct Investmentwith Endogenous Productivity Effects in Computable General Equilibrium Models

Tarr, David G.

World Bank, Washington, DC

关键词: ACCESS TO SERVICES;    ACCOUNTANT;    ACCOUNTING;    ADVANCED COUNTRIES;    AGGREGATE SUPPLY;   

DOI  :  10.1596/1813-9450-6012
RP-ID  :  WPS6012

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

With the growing importance of servicesand foreign direct investment in services, it is importantto have a framework to analyze the impact of theliberalization of barriers to foreign direct investment inservices. This paper summarizes several recent papers andbuilds policy-based computable general equilibrium modelsshowing the dynamics of services, foreign direct investmentand the endogenous productivity effect from services. Themodeling framework shows that the liberalization of barriersagainst foreign direct investment in services yields welfaregains several times larger than the usual estimates fromtraditional computable general equilibrium models, whichfocus on goods trade, not foreign direct investment inservices. The larger estimates are consistent witheconometric evidence on the gains from servicesliberalization. The paper begins with a small stylized modelto help understand the fundamental economics. Then itdescribes models developed at the request of the Russiangovernment to assess the potential impact of Russia'saccession to the WTO. Reviews of the work indicated that themodeling helped the Russian government gain public supportfor the WTO entry. The paper also describes a new techniquethat allows modelers to include tens of thousands ofhouseholds in the model.