Political Economy of Service Trade Liberalization and the Doha Round

10 Pages Posted: 11 Jan 2008

See all articles by K. C. Fung

K. C. Fung

University of California, Santa Cruz - Department of Economics

Alan K. Siu

National Bureau of Economic Research (NBER)

Abstract

In this paper we examine political economic issues of service trade liberalization of a developing country in the context of the Doha Round negotiations. We first discuss the various unique characteristics of the service industries. Then we incorporate these features in a Grossman-Helpman style political economy model and solve for the politically-determined service sector protection. We then examine how various factors such as increased cross-cutting lobbying, the reduction of state-owned service providers and linking negotiation on agricultural protection with negotiation on service sector liberalization can help reduce the political constraints on liberalizing the service sectors.

Suggested Citation

Fung, K. C. and Siu, Alan K., Political Economy of Service Trade Liberalization and the Doha Round. Pacific Economic Review, Vol. 13, Issue 1, pp. 124-133, February 2008, Available at SSRN: https://ssrn.com/abstract=1082629 or http://dx.doi.org/10.1111/j.1468-0106.2007.00357.x

K. C. Fung (Contact Author)

University of California, Santa Cruz - Department of Economics ( email )

Santa Cruz, CA 95064
United States
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831-459-5077 (Fax)

HOME PAGE: http://econ.ucsc.edu/Faculty/facFung.shtml

Alan K. Siu

National Bureau of Economic Research (NBER)

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