Contents -- Preface -- List of Tables -- List of Figures -- Abbreviations -- Chapter 1 Making Sense of Services Trade Reform Philippa Dee -- 1.1 Introduction -- 1.2 Wheat and Chaff -- 1.3 Tracing Through the Policy Implications -- 1.4 How to Achieve Services Trade Reform in Future -- Part 1 Model Frameworks -- Chapter 2 Issues in the Application of CGE Models to Services Trade Liberalization Philippa Dee, Alexis Hardin and Leanne Holmes -- 2.1 Introduction -- 2.2 Past Modelling of Services Trade and Foreign Direct Investment -- Model frameworks -- Treatment of services trade barriers -- Data -- 2.3 A Way Forward -- Data -- 2.4 Incorporating Services Trade Barriers in Petri's Framework -- The nature of barriers to services trade -- Restrictions on ongoing operation -- Restrictions on establishment -- Who gets the rents? -- 2.5 The Welfare Implications of Services Trade Liberalization -- GTAP welfare decomposition -- Incorporating FDI -- Principles of services trade liberalization -- Chapter 3 Modelling the Policy Issues in Services Trade Philippa Dee -- 3.1 Why Worry? -- 3.2 What is Special about Services? -- 3.3 What is Special About Services Trade? -- Theoretical issues in modelling ownership and location -- Are economies of scale regional? -- Is McDonalds the same the world over? -- Free entry? -- Which factors of production move? -- Who owns the FDI capital and how is it financed? -- Data and parameter issues in modelling ownership and location -- 3.4 What is Special about Services Trade Barriers? -- How to measure barriers to services trade? -- Assessment -- Part 2 Model Applications -- Chapter 4 Multilateral Liberalization of Services Trade Philippa Dee and Kevin Hanslow -- 4.1 Introduction -- 4.2 The FTAP Model -- Theoretical structure -- Model database -- 4.3 The Effects of Eliminating Post-Uruguay Barriers to Trade.

4.4 The Effects of Partial Liberalization of Services Trade -- 4.5 Agenda for Further Research -- Chapter 5 Measuring the Cost of Barriers to Trade in Services Philippa Dee, Kevin Hanslow, and Tien Phamduc -- 5.1 The FTAP Model -- Estimates of barriers to services trade -- 5.2 The Cost Impact of Barriers to Trade in Services -- 5.3 The Sectoral Effects of Removing Barriers to Trade in Services -- Partial equilibrium effects on sectoral output -- General equilibrium effects on sectoral output -- General equilibrium welfare effects -- 5.4 Agenda for Further Research -- Chapter 6 Economy-wide Effects of Further Trade Reforms in Tunisia's Services Sectors Philippa Dee and Ndiame Diop -- 6.1 Introduction -- 6.2 Methodological Approach to Measuring Services Trade Barriers -- 6.3 Benchmarking Tunisia on Services Restrictiveness -- 6.4 Reform Options -- Reform strategies -- First-round impacts on sectoral prices -- 6.5 Economy-wide Effects of Services Trade Liberalization in Tunisia -- Modelling framework -- Results -- 6.6 Economy-wide Effects of Further Liberalizing Agriculture and Manufacturing -- Reform scenarios -- Results -- 6.7 Concluding Comments -- Chapter 7The Employment Implications of Liberalizing Foreign Direct Investment in Services Philippa Dee (with Appendix by Hildegunn Nordås) -- 7.1 Introduction -- 7.2 Barriers to Foreign Direct Investment in Services -- 7.3 Modelling the First-round Effects of Liberalizing FDI in Services -- 7.4 Modeling the Economy-wide Effects of Liberalizing FDI in Services -- 7.5 Long-run Economy-wide Effects of the G20 Liberalizing FDI in Services -- 7.6 The Short Run -- 7.7 Global Liberalization -- 7.8 Sensitivity Analysis -- 7.9 Conclusion -- A.1. The Effects of FDI Restrictions on Bilateral FDI -- Hildegunn Nordås, Directorate for Trade and Agriculture, OECD -- Data -- Regression results -- Part 3 Policy Insights.

Chapter 8 The Rise of Services Trade: Regional Initiatives and Challenges for the WTO Philippa Dee and Alexandra Sidorenko -- 8.1 The Rise of Services -- 8.2 Services Trade Liberalization -- 8.3 Rationale for Reciprocity -- 8.4 Challenges for the WTO -- Domestic regulation -- Emergency safeguards -- Subsidies -- Government procurement -- Autonomous liberalization -- Special treatment for LDCs -- Movement of natural persons -- 8.5 Regional Initiatives - Preferential Trading Arrangements -- 8.6 Other Regional Initiatives -- 8.7 Back to Basics - Services Trade Liberalization as Domestic Microeconomic Reform -- Chapter 9 Services: A 'Deal-maker' in the Doha Round? Philippa Dee and Christopher Findlay -- 9.1 Introduction -- 9.2 The Nature of Services Trade Barriers -- 9.3 The Empirical Evidence on Services Trade Barriers -- The height of the barrier -- The incidence of the barrier -- The impact of the barrier -- 9.4 Prospects for Services Negotiations in the WTO -- Are there benefits from reciprocity across sectors? -- Are services negotiations a zero-sum or positive-sum game?10 -- So what should happen with services? -- 9.5 Conclusion -- Chapter 10 Services in PTAs: Donuts or Holes? hilippa Dee and Christopher Findlay -- 10.1 Introduction -- 10.2 Evaluating the Rules -- 10.3 Evaluating the Commitments -- 10.4 Evaluating the Extent of Real Liberalization -- 10.5 Evaluating the Economic Significance Real PTA Liberalization -- 10.6 Implications for an Australia-China Free Trade Agreement -- Chapter 11 What Behind-the-Border Reforms in Services and Investment are Best Done through Trade Agreements? Philippa Dee -- 11.1 Introduction -- 11.2 Trade Agreements versus Other Modes of Liberalization2 -- The case for reciprocity in services and investment -- 11.3 What to Liberalize within Trade Agreements -- Limits to liberalization3 -- What to liberalize?.

The size of the affected sector -- Intersectoral linkages -- Sectoral priorities - principles of piecemeal reform -- 11.4 Concluding Comments -- Part 4 Achieving Services Trade Reform through Domestic Reform -- Chapter 12 The Role of Institutions in Structural Reform Philippa Dee -- 12.1 Introduction -- The role of institutions -- 12.2 Impediments to Structural Reform -- Identifying better policy options -- Managing vested interests -- Assisting policy coordination within government -- 12.3 The Characteristics of Effective Policy Review Institutions -- 12.4 Good Institutions to Implement and Enforce the Rules -- 12.5 Regional Examples -- Chapter 13 Toward a Theory of Policy Efficiency Philippa Dee -- 13.1 Introduction -- 13.2 Defining Policy Efficiency -- 13.3 Achieving Policy Efficiency -- 13.4 Political Constraints to Achieving Policy Efficiency -- 13.5 The Role of (High Level) Bureaucracy -- 13.6 Easing the Political Constraints to Policy Efficiency -- 13.7 Application to South Asia -- 13.8 Summary of South Asian Reform Case Studies -- Chapter 14 Promoting Domestic Reforms through Regionalism Philippa Dee and Anne McNaughton -- 14.1 Introduction -- 14.2 Theoretical Arguments -- Political economy arguments -- Economic arguments -- 14.3 Empirical Evidence -- Case studies -- Broad-brush econometric evidence -- Evidence from economic papers -- Evidence from legal and political papers -- Evidence from examining PTAs -- Econometric evidence from looking at the existence of PTAs -- Evidence from looking at the detailed provisions of PTAs -- Comparing PTA commitments with WTO commitments -- Comparing PTA commitments with actual practice -- 14.4 Why Has Reform Been Unilateral Outside the EU? -- 14.5 What is Special about the EU? -- 14.6 How to Shape Regional Institutions to Promote Domestic Reform? -- References.