The Economic Effects of Removing Barriers to Trade in Telecommunications

24 Pages Posted: 29 Apr 2004

See all articles by George Verikios

George Verikios

Monash University - Centre of Policy Studies

Xiao-Guang Zhang

Government of the Commonwealth of Australia - Productivity Commission

Abstract

This paper quantifies the impact on the economies of the world of complete liberalisation of trade in a key services sector, telecommunications, using a global general equilibrium model. Barriers to trade in telecommunications are highest in developing regions and lowest in developed regions. The paper uses new estimates of these barriers for telecommunications. The results indicate that completely liberalising trade in telecommunications would benefit the world as a whole in terms of increased production by 0.1 per cent. Although the distribution of gains among regions is not even, most regions are projected to gain from liberalising trade in telecommunications. In general, the regions with the highest barriers benefit most. The analysis demonstrates that commercial presence of foreign firms via foreign direct investment is an important mode of delivering telecommunications.

Suggested Citation

Verikios, George and Zhang, Xiao-Guang, The Economic Effects of Removing Barriers to Trade in Telecommunications. The World Economy, Vol. 27, No. 3, pp. 435-458, March 2004. Available at SSRN: https://ssrn.com/abstract=514060

George Verikios (Contact Author)

Monash University - Centre of Policy Studies ( email )

Clayton, Vic 3800
Australia

HOME PAGE: http://www.monash.edu.au/policy/

Xiao-Guang Zhang

Government of the Commonwealth of Australia - Productivity Commission ( email )

Level 28
35 Collins St.
Melbourne, Victoria, Victoria 3000
Australia

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