Upload
mariam-benton
View
33
Download
3
Tags:
Embed Size (px)
DESCRIPTION
Services Trade for Growth: Challenges and Opportunities for Developing Countries. Iza Lejarraga Trade Policy Linkages and Services Division Trade and Agriculture Directorate. Harnessing Services for Sustainable Development: Opportunities and Challenges for Jordan - PowerPoint PPT Presentation
Citation preview
Services Trade for Growth:Challenges and Opportunities for
Developing Countries
Iza LejarragaTrade Policy Linkages and Services Division
Trade and Agriculture Directorate
Harnessing Services for Sustainable Development:Opportunities and Challenges for Jordan
Jordan Enterprise Development CorporationAmman, 21-22 September, 2010
OECD Trade & Agriculture 2
OverviewOverview
Open Services Markets: What are the opportunities?
Liberalizing Services: What are the challenges?
Embedding Services Reform in a Growth Strategy
Measuring & Monitoring Services Reform: STRIs
OECD Trade & Agriculture 3
What are the opportunities?What are the opportunities?
OECD Trade & Agriculture 4
What are the challenges?What are the challenges?
OECD Trade & Agriculture 5
Embedding services reform in growth strategyEmbedding services reform in growth strategy
Services liberalization is a means to an end: linking it to growth Economic growth is necessary for development
Services reforms worth pursuing should be linked to growth/societal objective
Getting the largest bang for the buck of regulatory reform
Targeting sectors that have highest impact: binding constraints
Assess where are the binding constraints to growth at any particular time
Liberalize selectively those sectors that relax the binding constraints to growth
If access to capital is not binding the economy, liberalizing financial services won’t yield a significant effect on growth until the binding constraint is relaxed
A framework for prioritization: Growth Diagnostics Analytical tool to prioritize and rank interventions according to growth impact
Intuitive, accessible, practical: helps dialogue and coordination
OECD Trade & Agriculture 6
What reforms target constraints to entrepreneurship?What reforms target constraints to entrepreneurship?
High cost of financeLow return to economic activity
Low social returns Low appropriability
government failures
market failures
poor geography
low human capital
bad infra-structure
micro risks: property rights,
corruption, taxes
macro risks: financial,
monetary, fiscal instability
information externalities:
“self-discovery”
coordination externalities
Low domestic savings + bad international finance
bad local finance
High risk High cost
Low competition
Problem: Low levels of private investment and entrepreneurship
OECD Trade & Agriculture 7
Measuring Services Reforms: STRIsMeasuring Services Reforms: STRIs
What is a Services Trade Restrictiveness Index (STRI)? A composite indicator of services trade restrictiveness by sector and country
Not a measure of economic performance or commercial attractiveness
How is it developed?
Collects qualitative information on barriers to trade in services
Translates qualitative data into aggregated quantitative scores by sector
Classifies barriers by mode, MA/NT/DR, discriminatory, entry/ongoing operations
How can it be useful? Helps assess the impact of services trade barriers in the economy
Enables comparison of restrictions across countries at the sectoral level
Facilitates bilateral and multilateral negotiations on trade in services
Catalyzes domestic political bargaining on services regulatory reforms
OECD Trade & Agriculture 8
OECD Method for Constructing STRIsOECD Method for Constructing STRIs
OECD Trade & Agriculture 9
STRIs in MENA: Where does Jordan standSTRIs in MENA: Where does Jordan stand
STRIs: Selected MENA countries (2007)
Countries: Egypt, Jordan, Lebanon, Morocco
Sectors: financial (banking & insurance), telecoms, transport (air & maritime)
Data: questionnaires and country studies; de jure and de facto (implementation)
Method: aggregate (Anderson & Neary 1994) and modal (Dihel & Shepherd 2007)
Results: No country ranks most open/restrictive across all sectors
Jordan has relatively lower STRIs, except for insurance where it has many restrictions
Lebanon registers highest liberalization in banking (via mode 3; high protection mode 4)
Morocco has liberalized telecoms, banking, air transport (high barriers in maritime)
Egypt’s insurance and telecoms sectors are most liberalized; air most protected
OECD Trade & Agriculture 10
STRIs: Scores for Banking and Insurance Sectors
Aggregate Mode 1 Mode 2 Mode 3 Mode 4
Egypt 0.50 0.00 0.00 0.62 1.55
Jordan 0.88 2.27 2.10 0.32 1.88
Morocco 1.61 3.44 3.17 0.91 0.40
Aggregate Mode 1 Mode 2 Mode 3 Mode 4
Lebanon 0.20 0.00 0.00 0.04 2.69
Jordan 0.41 1.10 0.00 0.22 1.82
Egypt 0.85 1.49 0.00 1.03 1.07
Morocco 1.16 1.98 3.33 0.34 0.19
STRI Scores for Banking Sector
STRI Scores for Insurance Sector
OECD Trade & Agriculture 11
STRIs: Scores for Telecommunications (Fixed and Mobile)
Aggregate Mode 1 Mode 2 Mode 3 Mode 4
Morocco 0.59 0.00 0.00 0.67 1.16
Jordan 0.78 0.00 0.00 0.67 2.66
Egypt 0.99 0.00 0.00 0.77 2.24
Aggregate Mode 1 Mode 2 Mode 3 Mode 4
Morocco 0.80 0.64 2.05 0.81 0.73
Jordan 0.85 0.02 0.00 1.08 2.23
Egypt 1.22 0.64 2.05 1.36 1.81
STRI Scores for Fixed Telecoms Sector
STRI Scores for Mobile Telecoms Sector
OECD Trade & Agriculture 12
STRIs: Scores for Transport Sectors (Maritime & Air)
Aggregate Mode 1 Mode 3 Mode 4
Jordan 0.47 0.46 0.49 0.36
Morocco 0.49 0.41 0.60 0.36
Egypt 0.73 0.41 0.60 0.10
Aggregate Mode 1 Mode 3 Mode 4
Jordan 0.36 0.5 0.34 0.37
Egypt 0.55 0.75 0.52 0.17
Morocco 0.59 0.5 0.64 0.25
STRI Scores for Maritime Transport Sector
STRI Scores for Air Transport Sector
OECD Trade & Agriculture 13
Thank you for your attention!
OECD Trade and AgricultureOECD Trade and Agriculture
Contact: [email protected] www.oecd.org