A Model of Trade Liberalization in Services
A Model of Trade Liberalization in Services
复制标题
服务贸易自由化的模式
DOI:
10.1111/j.1467-9396.2006.00567.x
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发表时间:
2006
期刊:
影响因子:
--
通讯作者:
A. Zhang
中科院分区:
文献类型:
--
作者:
C. Wong;Jinhui Wu;A. Zhang
This paper develops an intra-industry service trade model taking into account important features of services. We find that service trade liberalization between identical economies is welfare enhancing when the pre-trade domestic market liberalization is limited. This holds regardless of the degree of trade liberalization and of the mode of supply. However, if the pre-trade environment is characterized by a free-entry equilibrium, then service trade liberalization is not necessarily welfare improving. It is welfare enhancing if the trade liberalization is full and the mode of supply is cross-border. The gain from trade in our model comes from the improvement in service quality - better matching between consumers' ideal varieties and firms' product specificity. The implications for the mode of supply in service trade are also explored.