Click here for search results
Regional trade policy options for Tanzania : the importance of services commitments
 
Author:Jensen, Jesper; Tarr, David G.; Collection Title:Policy Research working paper ; no. WPS 5481
Country:Tanzania; Date Stored:2010/11/17
Document Date:2010/11/01Document Type:Policy Research Working Paper
SubTopics:Environmental Economics & Policies; Transport Economics Policy & Planning; Economic Theory & Research; Emerging Markets; Banks & Banking ReformLanguage:English
Region:AfricaReport Number:WPS5481
Volume No:1 of 1  

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.

Official Documents
Official, scanned versions of documents (may include signatures, etc.)
File TypeDescriptionFile Size (mb)
PDF 121 pagesOfficial version*8.47 (approx.)
TextText version**
How To Order

* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.
** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.



Permanent URL for this page: http://go.worldbank.org/DCUXZXJ7O0