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Welfare and Employment Effects of Liberalization of the Services Trade between the African Caribbean and Pacific and the European Union Countries

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  • Rakotoarisoa, Manitra A.

Abstract

The purpose of this paper is to estimate the welfare and employment effects of the liberalization of services trade between ACP and EU countries. Of primary importance is the timing of the liberalization of the service sector with respect to the liberalization of the goods sectors, especially for the implications for and impacts on employment and welfare. This paper uses a dynamic general equilibrium model (GDyn) and takes into account the differences in labour productivity trend among trading blocks and regions. The simulation includes varying the rates of productivity growth and technological progress and the timing and the rates of tariff cuts in the services sectors to examine the extent of welfare and employment effects. The scenarios are designed to determine the distribution of the welfare and employment gains or losses among regions and among sectors for the time horizon 2010-2050.

Suggested Citation

  • Rakotoarisoa, Manitra A., 2016. "Welfare and Employment Effects of Liberalization of the Services Trade between the African Caribbean and Pacific and the European Union Countries," Conference papers 332756, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332756
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    References listed on IDEAS

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    1. Olivier Cattaneo & Michael Engman & Sebastian Saez & Robert M. Stern, 2010. "International Trade in Services: New Trends and Opportunities for Developing Countries (Description and Table of Contents)," Working Papers 605, Research Seminar in International Economics, University of Michigan.
    2. Dijk, Michiel van, 2013. "Productivity growth at the sectoral level: measurement and projections," 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152268, International Agricultural Trade Research Consortium.
    3. Fontagné, Lionel & Guillin, Amélie & Mitaritonna, Cristina, 2010. "Estimations of Tariff Equivalents for the Services Sectors," Conference papers 331941, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Olivier Cattaneo & Michael Engman & Sebastián Sáez & Robert M. Stern, 2010. "International Trade in Services : New Trends and Opportunities for Developing Countries," World Bank Publications - Books, The World Bank Group, number 2476.
    5. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
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