Explaining Liberalization Commitments in Financial Services Trade
Study Centre Gerzensee
World Bank - Development Research Group (DECRG)
European Central Bank (ECB)
World Bank Policy Research Working Paper No. 2999
Harms, Mattoo, and Schuknecht examine the determinants of market access commitments in international financial services trade in the General Agreement on Trade in Services (GATS). Based on a theoretical model, they investigate empirically the role of domestic political economy forces, international bargaining considerations, and the state of complementary policy.
The empirical results confirm the relevance of the authors' model in explaining banking and (to a somewhat lesser degree) securities services liberalization commitments. The findings imply that those who seek greater access to developing country markets for financial services must do more to counter protectionism at home in areas of export interest for developing countries.
This paper - a product of Trade, Development Research Group - is part of a larger effort in the group to assess the implications of liberalizing trade in services. This research was supported in part by the U.K. Department for International Development.
Number of Pages in PDF File: 41
Date posted: April 20, 2016