Modeling Services Liberalization: The Case of Tanzania

Despite economic theory and empirical literature that have shown that wide availability of business services contributes significantly to productivity gains and growth, economic modelers have been slow to meaningfully incorporate services into their models. This paper employs a 52-sector, small, ope...

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Main Authors:	Jensen, Jesper, Rutherford, Thomas F., Tarr, David G.
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Economic Growth of Open Economies F430 Industry Studies: Services: Government Policy L880 Industrialization Manufacturing and Service Industries Choice of Technology O140
Online Access:	http://hdl.handle.net/10986/5883

id	okr-10986-5883
recordtype	oai_dc
spelling	okr-10986-58832021-04-23T14:02:23Z Modeling Services Liberalization: The Case of Tanzania Jensen, Jesper Rutherford, Thomas F. Tarr, David G. Economic Growth of Open Economies F430 Industry Studies: Services: Government Policy L880 Industrialization Manufacturing and Service Industries Choice of Technology O140 Despite economic theory and empirical literature that have shown that wide availability of business services contributes significantly to productivity gains and growth, economic modelers have been slow to meaningfully incorporate services into their models. This paper employs a 52-sector, small, open-economy computable general equilibrium model of the Tanzanian economy to assess the impact of the liberalization of regulatory barriers against foreign and domestic business service providers in Tanzania. The model incorporates foreign direct investment in services, and productivity effects in both goods and services markets endogenously through a Dixit-Stiglitz framework. The paper summarizes and builds on the surveys and policy notes of the regulatory regimes in business services in Tanzania, and estimates the ad valorem equivalent of barriers to foreign direct investment. The paper estimates significant gains to Tanzania from services reforms, especially in banking, maritime and road transportation. Decomposition exercises reveal that the largest gains will derive from liberalization of non-discriminatory regulatory barriers. 2012-03-30T07:35:00Z 2012-03-30T07:35:00Z 2010 Journal Article Journal of Economic Integration 1225651X http://hdl.handle.net/10986/5883 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Tanzania
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Economic Growth of Open Economies F430 Industry Studies: Services: Government Policy L880 Industrialization Manufacturing and Service Industries Choice of Technology O140
spellingShingle	Economic Growth of Open Economies F430 Industry Studies: Services: Government Policy L880 Industrialization Manufacturing and Service Industries Choice of Technology O140 Jensen, Jesper Rutherford, Thomas F. Tarr, David G. Modeling Services Liberalization: The Case of Tanzania
geographic_facet	Tanzania
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	Despite economic theory and empirical literature that have shown that wide availability of business services contributes significantly to productivity gains and growth, economic modelers have been slow to meaningfully incorporate services into their models. This paper employs a 52-sector, small, open-economy computable general equilibrium model of the Tanzanian economy to assess the impact of the liberalization of regulatory barriers against foreign and domestic business service providers in Tanzania. The model incorporates foreign direct investment in services, and productivity effects in both goods and services markets endogenously through a Dixit-Stiglitz framework. The paper summarizes and builds on the surveys and policy notes of the regulatory regimes in business services in Tanzania, and estimates the ad valorem equivalent of barriers to foreign direct investment. The paper estimates significant gains to Tanzania from services reforms, especially in banking, maritime and road transportation. Decomposition exercises reveal that the largest gains will derive from liberalization of non-discriminatory regulatory barriers.
format	Journal Article
author	Jensen, Jesper Rutherford, Thomas F. Tarr, David G.
author_facet	Jensen, Jesper Rutherford, Thomas F. Tarr, David G.
author_sort	Jensen, Jesper
title	Modeling Services Liberalization: The Case of Tanzania
title_short	Modeling Services Liberalization: The Case of Tanzania
title_full	Modeling Services Liberalization: The Case of Tanzania
title_fullStr	Modeling Services Liberalization: The Case of Tanzania
title_full_unstemmed	Modeling Services Liberalization: The Case of Tanzania
title_sort	modeling services liberalization: the case of tanzania
publishDate	2012
url	http://hdl.handle.net/10986/5883
_version_	1764396647883735040

Modeling Services Liberalization: The Case of Tanzania

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