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Changes in services trade barriers in banking and their impact: the case of the ASEAN+3

Authors

  • Xiaobing Feng,

    1. Antai Economic and Management School, Shanghai Jiaotong University and School of Finance, Shanghai Institute of Foreign Trade
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  • Ilan Alon

    1. China Center, Rollins College, White Park, Florida
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    • Xiaobing Feng, Associate Professor, Antai Economic and Management School, Shanghai Jiaotong University and School of Finance, Shanghai Institute of Foreign Trade; and Ilan Alon is Cornell Professor, China Center, Rollins College, White Park, Florida. The study is supported by Leading Academic Discipline Project of Shanghai Municipal Education Commission, Project Number: J51206; National Education Committee Funding: 11YJA790030; Shanghai Social Science Fund: 2011BJB015 and Major Innovation Program of Shanghai Municipal Education Commission12ZS166.


Abstract

Although there has been extensive research on the ASEAN+3 countries, which reveals a synchronisation of economic policies, including exchange rate management policies, research on the regional pattern of trade policies in the banking sector is limited. We evaluate the trade barriers in banking and their evolution, using data from three sequential surveys conducted by the World Bank and surveys by other international organisations. We find that the country dispersions in trade-restricting policies are stable over time. Moreover, we find no evidence of moves in the direction of liberalisation in the sector. The economic modelling undertaken provides an indication of the real income gains and the cost increases of the policies adopted.

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