TY - UNPB
T1 - Opening Services Markets within Europe
T2 - Modelling Foreign Establishments in a CGE Framework
AU - Lejour, (Arjan Marcel)
AU - Rojas-Romagosa, (Hugo)
AU - Verweij, (Gerard C.G.)
N1 - Met lit.opg. - Met samenvatting in het Nederlands
PY - 2007/3
Y1 - 2007/3
N2 - This paper presents the treatment of FDI in our CGE model WorldScan based on the ideas of Petri (1997) and Markusen (2002). They assume that firms establishing affiliates abroad also transfer firm-specific knowledge. Consequently, capital and products differ from existing capital and products in the host country. As an illustration, we apply this model to assess the proposals of the European Commission to open up services markets. FDI in services could increase by 20% to 35%. However, the overall economic impact is limited. Our assessment suggests that GDP in the EU25 could increase up to 0.4%. These effects could be up to 0.8% higher if foreign capital also increases the overall productivity of the services sector.
AB - This paper presents the treatment of FDI in our CGE model WorldScan based on the ideas of Petri (1997) and Markusen (2002). They assume that firms establishing affiliates abroad also transfer firm-specific knowledge. Consequently, capital and products differ from existing capital and products in the host country. As an illustration, we apply this model to assess the proposals of the European Commission to open up services markets. FDI in services could increase by 20% to 35%. However, the overall economic impact is limited. Our assessment suggests that GDP in the EU25 could increase up to 0.4%. These effects could be up to 0.8% higher if foreign capital also increases the overall productivity of the services sector.
KW - Europa
KW - Investment management
KW - International economic relations
KW - Investeringen
KW - Dienstensector
M3 - Discussion paper
SN - 9058333162
T3 - CPB discussion paper
BT - Opening Services Markets within Europe
PB - CPB Netherlands Bureau for Economic Policy Analysis
CY - The Hague
ER -