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The Welfare Implications of Services Liberalization in a Developing Country :, Evidence from Tunisia, Nizar Jouini, Nooman Rebei

We propose an integrated method based on a two-sector small open economy dynamic and stochastic general equilibrium model to estimate non-tariff barriers and quantify the impact of services liberalization. The major component of trade barriers is explicitly modeled through the introduction of entry-sunk costs. Hence, liberalization is treated assuming a government's policy decision aimed at reducing those costs. Then, we estimate the model using Bayesian techniques for Tunisia and the Euro Area. The paper presents a precise quantitative evaluation of services trade barriers as the difference between entry-sunk costs in Tunisia versus the Euro Area. We find significant welfare benefits in addition to aggregate and sectoral growth gains the Tunisian economy could attain following services liberalization. Surprisingly, the goods sector is the one that benefits the most from services liberalization in the short- and long-term horizons
Table Of Contents
Cover; Contents; I. Introduction; II. Tunisian Service sector: Context and some Stylized Facts; Figures; 1. Country-level services trade restrictions index; III. The Model; A. Model description; B. The steady state and identification; 2. The steady state: A sensitivity analysis; IV. Estimation; A. Estimation methodology and data; B. Calibration and prior distributions; C. Estimation results; Tables; 1. Estimated parameters; V. The impact of free trade on welfare and some real variables; A. Methodology; B. Results; 2. The effects of eliminating trade barriers; C. Transitional dynamics
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (44 p.)
Specific Material Designation
Form Of Item

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