Regional Trade Policy Options for Tanzania : The Importance of Services Commitments

Despite the growing importance of commitments to foreign investors in services in regional trade agreements, there are no applied general equilibrium models in the literature that assess these regional impacts. This paper develops a 52 sector appli...

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Bibliographic Details
Main Authors:	Jensen, Jesper, Tarr, David G.
Format:	Policy Research Working Paper
Language:	English
Published:	2012
Subjects:	ACCOUNTABILITY ACCOUNTING ADJUSTMENT POLICIES ADVANCED COUNTRIES AFFILIATES AGRICULTURE AIR AIR FREIGHT AIR TRANSPORT BALANCE OF PAYMENTS BANK LOANS BANK OF TANZANIA BANK OFFICE BANKING SECTOR BANKING SUPERVISION BARRIER BASE YEAR BORDER CROSSINGS CAPITAL STOCKS CARS COLLATERAL COMMODITY COMMUNICATION TECHNOLOGY COMPARATIVE ADVANTAGE COMPETITIVENESS CONGESTION CONSTANT RETURNS TO SCALE CONSUMERS CONTRACT ENFORCEMENT COST STRUCTURE COST STRUCTURES COUNTRY MARKET COUNTRY MARKETS CREDIT BUREAU CREDIT CULTURE CROSS-ELASTICITY CROSSING CUSTOMS UNION DEMAND CURVE DEMAND CURVES DEPOSIT DEPOSITS DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT INTENSITY DOMESTIC BANKS DOMESTIC MARKET E-BUSINESS ECONOMETRIC ESTIMATES ECONOMIC ACTIVITY ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC THEORY ECONOMICS LITERATURE ECONOMIES OF SCALE EFFECTIVE USE ELASTICITIES ELASTICITY ELASTICITY OF DEMAND ELASTICITY OF SUPPLY ELECTRONIC COMMERCE EMPIRICAL EVIDENCE EQUILIBRIUM EQUILIBRIUM MODELS EQUILIBRIUM PRICE EXCHANGE RATE EXPENDITURES EXPORT MARKET EXPORT MARKETS EXPORTS EXTERNALITIES EXTERNALITY FACTORS OF PRODUCTION FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL SERVICES FINANCIAL SUPPORT FINANCIAL SYSTEM FIRM PERFORMANCE FOREIGN BANKS FOREIGN CURRENCY FOREIGN CURRENCY DEPOSITS FOREIGN DIRECT INVESTMENT FOREIGN ENTRY FOREIGN FIRM FOREIGN FIRMS FOREIGN INVESTORS FOREIGN OWNERSHIP FOREIGN TRADE FREE TRADE FREE TRADE AGREEMENT FREE TRADE AGREEMENTS FREIGHT FACILITIES FREIGHT SERVICES GDP GOVERNMENT SECURITIES GROSS DOMESTIC PRODUCT HOME COUNTRY HOUSING HOUSING FINANCE IMPERFECT COMPETITION IMPORT TARIFFS INCOMES INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRIAL COUNTRIES INFRASTRUCTURES INSTITUTIONAL CAPACITY INSURANCE INSURANCE MARKET INSURERS INTEREST RATE INTERMEDIATE GOODS INTERMEDIATE INPUTS INTERNATIONAL AIR TRAVEL INTERNATIONAL TRADE INTERNATIONAL TRAVEL JOURNEY LEGISLATION LESS DEVELOPED COUNTRIES LIFE INSURANCE LOCAL CURRENCY MARGINAL COST MARGINAL COSTS MARGINAL REVENUE MARKET ACCESS MARKET SHARE MARKET SHARES MICROFINANCE MONOPOLISTIC COMPETITION MORTGAGE MORTGAGE MARKET MULTILATERAL TRADE NET LOSS NEW ENTRANTS NEW PRODUCTS OPEN ECONOMY PAYMENTS SYSTEM PER CAPITA INCOME POWER PARITY PRIVATE SECTOR CREDIT PRODUCERS PRODUCT DIFFERENTIATION PRODUCTION FUNCTION PRODUCTIVITY PRODUCTIVITY GROWTH PRODUCTIVITY INCREASES PROFITABILITY PROVISION OF CREDIT PURCHASING POWER RAIL RAIL FREIGHT RAILROADS RAILWAY RAILWAYS REAL ESTATE REFORM PROGRAM REGIONAL TRADE REGULATORY AUTHORITY REGULATORY ENVIRONMENT REGULATORY FRAMEWORK REGULATORY REGIME REGULATORY REGIMES REINSURANCE REINSURANCE ARRANGEMENTS RESIDENTIAL MORTGAGES ROAD ROAD NETWORK ROAD TRANSPORT ROADS ROUTES SINGLE MARKET SMALL COUNTRIES SUBSIDIARIES SUPPLY CURVE SUPPLY CURVES TARIFF BARRIERS TAX TECHNOLOGY TRANSFER TELECOMMUNICATIONS TELEPHONE SERVICE TERMS OF TRADE TOTAL FACTOR PRODUCTIVITY TRADE DIVERSION TRADE LIBERALIZATION TRADE POLICIES TRADE POLICY TRAFFIC TRAFFIC MANAGEMENT TRANSIT TRANSPARENCY TRANSPORT TRANSPORT AUTHORITIES TRANSPORT FACILITATION TRANSPORTATION TRANSPORTATION COSTS TRANSPORTATION SERVICES TRUE VALUE ADDED VALUE OF OUTPUT VARIABLE COSTS VEHICLE WELFARE ECONOMICS WELFARE GAINS WORLD MARKET WTO
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101117083006 http://hdl.handle.net/10986/3963

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Summary:	Despite the growing importance of commitments to foreign investors in services in regional trade agreements, there are no applied general equilibrium models in the literature that assess these regional impacts. This paper develops a 52 sector applied general equilibrium model of Tanzania with foreign direct investment, and uses that model to assess Tanzania's regional and multilateral trade options. The model incorporates the features of the modern theory of international trade that has shown empirically that trade and foreign direct investment can increase productivity, and trade and foreign direct investment with technologically advanced countries is especially valuable for that purpose. To assess the sensitivity of the results to parameter values, the model is executed 30,000 times, and the results are reported as confidence intervals of the sample distributions. The analysis finds that a 50 percent preferential reduction in the ad valorem equivalents of barriers in all business services by Tanzania with respect to its African regional partners would be slightly beneficial for Tanzania. But wider liberalization, with larger partners or multilaterally, it will yield much larger gains due to providing access to a much wider set of service providers. Finally, the results show that the largest gains in services would be derived from reduction of regulatory barriers that are geographically non-discriminatory.

Regional Trade Policy Options for Tanzania : The Importance of Services Commitments

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