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dc.contributor.authorHuang, Huien
dc.contributor.authorWhalley, Johnen
dc.contributor.authorZhang, Shunmingen
dc.date.accessioned2009-01-28T15:53:09Z-
dc.date.available2009-01-28T15:53:09Z-
dc.date.issued2005-
dc.identifier.urihttp://hdl.handle.net/10419/18827-
dc.description.abstractThis paper considers liberalization of trade in both inter-temporal intermediation services andgoods in a joint spatial-inter-temporal trade model. Joint multi-commodity spatialintertemporal models are not (to our knowledge) used in the trade literature as generalcomparative statics results are unavailable and (in the presence of incomplete markets)existence can also be an issue. Here we use numerical simulation methods. We first considerworld with service trade autarky in which there is no domestic intermediation serviceprovision, and service trade liberalization involves costless inter-temporal intermediationprovided by foreign service providers. This simple treatment allows us to model service tradeliberalization as removing period by period budget constraints for domestic consumers. Insuch a world, if nonzero tariffs apply to spatial trade we present an example showing howservice trade liberalization can be welfare worsening. One implication is that negotiations onservices in the WTO General Agreement on Trade in Services (GATS) need not be welfareimproving if there are also ongoing tariff negotiations. We then expand the model to capture amore complex world where costly intermediation services can be provided by both withincountryand foreign providers. We again illustrate how services liberalization can be welfareworsening. We finally discuss whether welfare worsening service trade liberalization is likelyin a real-world situation of highly restricted services trade and considerably more open goodstrade, and when services trade are around 1/3 of total goods and services trade as is oftenclaimed from available global service trade data.en
dc.language.isoengen
dc.publisher|aCenter for Economic Studies and ifo Institute (CESifo) |cMunichen
dc.relation.ispartofseries|aCESifo Working Paper |x1463en
dc.subject.jelF11en
dc.subject.jelF00en
dc.subject.ddc330en
dc.subject.stwInternationaler Dienstleistungsverkehren
dc.subject.stwAussenhandelsliberalisierungen
dc.subject.stwGATSen
dc.subject.stwAussenwirtschaftstheorieen
dc.subject.stwZwei-Länder-Modellen
dc.subject.stwZeitökonomiken
dc.subject.stwAllgemeines Gleichgewichten
dc.subject.stwWohlfahrtseffekten
dc.subject.stwTheorieen
dc.titleTrade liberalization in a joint spatial inter-temporal trade model-
dc.typeWorking Paperen
dc.identifier.ppn48519712Xen
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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