Foreign multinationals in service sectors
A general equilibrium analysis of Brexit
Bibliographic Data
| ID | 21543770 |
|---|---|
| Authors | María C Latorre (0000-0001-8741-1897, Universidad Complutense de Madrid Madrid Spain), Zoryana Olekseyuk (0000-0001-9403-8234, Deutsches Institut für Entwicklungspolitik Bonn Germany), Hidemichi Yonezawa (0000-0002-9658-7226, Statistics Norway Oslo Norway, corresponding author) |
| Year | 2020 |
| Volume | 43 |
| Issue | 11 |
| Pages | 2830-2859 |
| Publication date | 2020-11-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | World Economy (JOURNAL) |
| Journal identifiers | ISSN: 0378-5920 • E-ISSN: 1467-9701 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/twec.13034 |
| OpenAlex | W3044468639 |
| Language | EN |
| Citations received | 1 |
| References cited | 51 |
We examine the role of foreign multinationals in service sectors in the context of Brexit, which is assumed to induce an increase in different types of barriers: (a) FDI barriers to multinationals in services; (b) non‐tariff barriers to trade; and (c) import tariffs between the UK and the rest of the EU. We use a state‐of‐the‐art Melitz approach in manufactures with multinationals operating in imperfectly competitive service sectors in a multiregional general equilibrium framework. We find that the increased FDI barriers in services explain about one third of the total welfare loss of Brexit. Furthermore, our decomposition analysis (by introducing each type of barriers separately) shows that the barriers against the EU service multinationals in the UK are harmful to British manufacturing sectors because they face a reduced (and more expensive) supply of intermediate services
Brexit · Business · Economics · Economy · European union · Foreign direct investment · General equilibrium theory · International economics · International trade · Macroeconomics · Market economy · Tariff · Trade barrier · Trade in services · Welfare · Economic Policies and Impacts · Global trade and economics · International Business and FDI
World Development Indicators 2017
The Great Convergence
Export Versus FDI with Heterogeneous Firms
Globalization and the Gains From Variety
An Overview of the GTAP 9 Data Base
The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity
Product standards and margins of trade
A CGE Analysis of the Impact of Foreign Direct Investment and Tariff Reform on Female and Male Workers in Tanzania
Foreign direct investment in services and manufacturing productivity
Quantifying the Impact of Services Liberalization in a Developing Country
Trade, Multinational Production, and the Gains from Openness
| Unique citing works | 1 |
|---|---|
| Citations per year | 0,17 |
| Citation span | 2020 - 2020 (1) |
| Citation velocity | historical |
| Highly cited | No |