{
  "title": "The Welfare Implications of Services Liberalization in a Developing Country: Evidence from Tunisia",
  "publication": "IMF Working Papers, May 15, 2013",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/the-welfare-implications-of-services-liberalization-in-a-developing-country-evidence-from-40541",
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  "summary": "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.",
  "sections": [
    {
      "heading": "Methodology and Model",
      "content": "- Two-sector small open economy dynamic and stochastic general equilibrium (DSGE) model.\n- Major component of trade barriers explicitly modeled through the introduction of entry-sunk costs.\n- Liberalization modeled as a government policy decision aimed at reducing entry-sunk costs.\n- Model estimated using Bayesian techniques for Tunisia and the Euro Area.\n- Services trade barriers quantified as the difference between entry-sunk costs in Tunisia versus the Euro Area."
    },
    {
      "heading": "Key Findings and Quantitative Results",
      "content": "- The paper presents a precise quantitative evaluation of services trade barriers as the difference between entry-sunk costs in Tunisia versus the Euro Area.\n- Significant welfare benefits are found for Tunisia following services liberalization.\n- Aggregate and sectoral growth gains are identified for the Tunisian economy following services liberalization.\n- The goods sector benefits the most from services liberalization in both short- and long-term horizons (surprising cross-sectoral impact highlighted)."
    },
    {
      "heading": "Policy Implications and Recommendations",
      "content": "- Services liberalization should be approached through policies that reduce entry-sunk costs for service providers.\n- Government action to lower entry-sunk costs can generate welfare improvements and both aggregate and sectoral growth.\n- Consideration of cross-sectoral effects is important: liberalizing services can yield substantial gains for goods production.\n\n---\n\n Content in this bundle\n\n- wp13110\n  - wp13110 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp13110 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/the-welfare-implications-of-services-liberalization-in-a-developing-country-evidence-from-40541"
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    "[Markdown version](/en/publications/wp/issues/2016/12/31/the-welfare-implications-of-services-liberalization-in-a-developing-country-evidence-from-40541/index.md)",
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    "Authors: Nizar Jouini, Nooman Rebei",
    "Published: May 15, 2013",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484367735.001",
    "Two-sector small open economy dynamic and stochastic general equilibrium (DSGE) model.",
    "Major component of trade barriers explicitly modeled through the introduction of entry-sunk costs.",
    "Liberalization modeled as a government policy decision aimed at reducing entry-sunk costs.",
    "Model estimated using Bayesian techniques for Tunisia and the Euro Area.",
    "Services trade barriers quantified as the difference between entry-sunk costs in Tunisia versus 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.",
    "Significant welfare benefits are found for Tunisia following services liberalization.",
    "Aggregate and sectoral growth gains are identified for the Tunisian economy following services liberalization.",
    "The goods sector benefits the most from services liberalization in both short- and long-term horizons (surprising cross-sectoral impact highlighted).",
    "Services liberalization should be approached through policies that reduce entry-sunk costs for service providers.",
    "Government action to lower entry-sunk costs can generate welfare improvements and both aggregate and sectoral growth.",
    "Consideration of cross-sectoral effects is important: liberalizing services can yield substantial gains for goods production.",
    "**_wp13110**"
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