Survey on Services Trade Policy Survey on Services Trade Policy 2007-20082007-2008

Measures Affecting International Trade in Services Measures Affecting International Trade in Services (100 countries)(100 countries)

World Bank, Development Research Group, Trade UnitWorld Bank, Development Research Group, Trade Unit

19 May 200919 May 2009

AFG

ALB

DZA

AND

AGO

ATA

ATG

ARG

ARM

AUS

AUT

AZE

BHS BHRBGD

BRB

BEL

BLZ

BEN

BMU

BTN

BOL

BIH

BWA

BRA

BRN

BGR

BFA

BDI

BLR

KHM

CMR

CAN

CPV

CAF

TCD

CHL

CHN

COL

COM

COG

CRI

HRV

CUB

CYP

CZE

DNK

DJIDMA

DOM

ECU

EGY

SLV

GNQ

ERI

EST

ETH

FLK

FRO

FJI

FIN

FRA

GUF

PYF

GAB

GMB

ISR

GEO

DEU

GHA

GRC

GRL

GRD

GLPGTM

GINGNB

GUY

HTI

HND

HUN

ISL

IND

IDN

IRNIRQ

IRLXIM

ISR

ITA

CIV

JAM

SJM

JPN

JOR

KA Z

KENKIR

PRK

KOR

KWT

KGZ

LAO

LVA

LBN

LSO

LBR

LBY

LIE

LTU

LUX

MAC

MKD

MDG

MWI

MYSMDV

MLI

MLT

MTQ

MRT

MUS

MEX

MDA

MCOMNG

MAR

MOZ

MMR

NAM

NPL

NLD

NCL

NZL

NIC

NER

NGA

MNP

NOR

OMN

PAK

PAN

PNG

PRY

PER

PHL

POL

PRT

PRI

QAT

REU

ROM

RUS

RWA

SMR

STP

SAU

SEN

SYC

SLE

SGP

SVKSVN

SLB

SOM

ZAF

ESP

LKA

LCAVCT SDN

SUR

SJM

SWZ

SWE

CHE

SYR

TWN

TJK

TZA

THA

TGO

TON

TTO

TUN

TUR TKM

TCA

UGA

UKR

ARE

GBR

USA

URY

UZB

VUT

VEN

VNM

ESH

WSM

YEM

YUG

ZAR

ZMB

ZWE

Low income

Lower middle

Upper middle

High-OECD

High-nonOECD

No data

Services trade database coverage

Sector CoverageSector Coverage Financial - banking and insurance (modes 1 Financial - banking and insurance (modes 1

& 3)& 3) Basic telecommunications – fixed and Basic telecommunications – fixed and

mobile (mode 3)mobile (mode 3) Transportation – maritime shipping and Transportation – maritime shipping and

auxiliary services, air passenger, road and auxiliary services, air passenger, road and rail freight (modes 1 & 3)rail freight (modes 1 & 3)

Retail distribution (mode 3)Retail distribution (mode 3) Professional – accounting and legal (modes Professional – accounting and legal (modes

1, 3 & 4)1, 3 & 4)

Policy dimensionsPolicy dimensions

Barriers to entry – licensing, Barriers to entry – licensing, ownership, legal form (mode 3), ownership, legal form (mode 3), quotas (mode 4)quotas (mode 4)

Restrictions on operationsRestrictions on operations

Regulatory environmentRegulatory environment

Data collection methodologyData collection methodology

Developing countries: legal firms in Developing countries: legal firms in each country completed detailed each country completed detailed questionnairesquestionnaires

OECD countries: comparable OECD countries: comparable information from public sources and information from public sources and through commissioned researchthrough commissioned research

Verification of findings by Verification of findings by delegations to the WTO and World delegations to the WTO and World Bank country economistsBank country economists

Preliminary quantification strategyPreliminary quantification strategy Wanted: Services Trade Restrictiveness Index (STRI)Wanted: Services Trade Restrictiveness Index (STRI)

Bottom-up vs top-down approachBottom-up vs top-down approach

One possibility: expert judgmentOne possibility: expert judgment• For each sector and mode, policy information was summarizedFor each sector and mode, policy information was summarized• Each summary obtains a score of restrictivenessEach summary obtains a score of restrictiveness• 5 discrete scores [0.00, 0.25, 0.50, 0.75, 1.00]5 discrete scores [0.00, 0.25, 0.50, 0.75, 1.00]• Exception: air passenger transportException: air passenger transport

Aggregation by weights Aggregation by weights • Modal weights: sector-specificModal weights: sector-specific• Sector weights: value added-based, same sector weights across Sector weights: value added-based, same sector weights across

countriescountries• Country weights: equal weights for countries within the regionCountry weights: equal weights for countries within the region

Overall Services trade restrictiveness index (STRI) Overall Services trade restrictiveness index (STRI) by regionby region

Note: SAR-3, MENA-5, EAP-7, LAC-9, AFR-6, ECA-6, OECD-20, World-56 countries

40.739.5

36.5

23.9

21.220.2

18.616.9

010

20

30

40

Res

tric

tiveness

of se

rvic

es

trade p

olic

y

SAR MENA EAP World LAC AFR ECA OECD

Source: Gootiiz, Mattoo 2009

STRI by region and sectorsSTRI by region and sectors

020

40

60

80

Res

tric

tiveness

of se

rvic

es

trade p

olic

y

SAR MENA EAP World LAC AFR ECA OECD

Financial Transportation

Telecom Professional

Retailing

Source: Gootiiz, Mattoo 2009

Comparison of UR commitment, Doha Offers, and policies Comparison of UR commitment, Doha Offers, and policies by regionby region

020

40

60

80

100

Serv

ices tra

de r

estr

ictiveness index

SAR AFR LAC EAP MENA OECD ECA

Offer Improvement (Uruguay Round commitment-Doha Offer)

Offer gap(Doha Offer-Actual policy) Actual Policy

Note: SAR-3, MENA-5, EAP-7, LAC-9, AFR-6, ECA-5, OECD-20,

World-55 countries excluding Russia Excluding air transport sector

Source: Gootiiz, Mattoo 2009

Comparison of UR commitment, Doha Offers, and policies Comparison of UR commitment, Doha Offers, and policies by Sectorby Sector

020

40

60

80

100

Serv

ices

trad

e r

est

rict

iveness

ind

ex

Financial Telecom Retailing Maritime Professional Overall

Offer Improvement (Uruguay Round commitment-Doha Offer)

Offer gap(Doha Offer-Actual policy) Actual Policy

Source: Gootiiz, Mattoo 2009

Looking aheadLooking ahead Present results in narrative and Present results in narrative and

quantitative formquantitative form Form partnerships to generate updatesForm partnerships to generate updates

We need:We need: Better understanding of relationship Better understanding of relationship

between modes of supplybetween modes of supply Better understanding of regulatory Better understanding of regulatory

discretiondiscretion Better data on market structureBetter data on market structure Better measures of performanceBetter measures of performance