40 Pages Posted: 29 Jan 2006
Date Written: February 2000
This paper reviews the economics of trade policy in financial services, highlighting differences between trade across borders and through commercial presence. Trade liberalization could complement other financial reforms by enhancing the efficiency, quality, and variety of financial services and by encouraging improvement of financial regulations and practices. However, it raises sectoral, strategic, and cultural concerns. The design of trade policy should therefore emphasize the nexus with the macroeconomic framework and other financial sector policies, especially prudential and capital account regulations. It should also differentiate between types of trade. National reforms should be coordinated with multilateral trade agreements and initiatives on international financial architecture.
Keywords: Financial services, capital account, trade, GATS
JEL Classification: G18, F23, F13
Suggested Citation: Suggested Citation
Tamirisa, Natalia T. and Sorsa, Piritta and Bannister, Geoffrey J. and McDonald, Bradley and Wieczorek, Jaroslaw, Trade Policy in Financial Services (February 2000). IMF Working Paper, Vol. , pp. 1-40, 2000. Available at SSRN: https://ssrn.com/abstract=879391