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Title: |
Dynamic Effects of Trade in Financial Services |
| Author: |
Francois,
Joseph F. |
| Author
Affiliation: |
WTO Secretariat
and CEPR |
| Source: |
International Economic Journal, Autumn 1995, v. 9, no. 3, pp. 1-14 |
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Publication Date: |
Autumn 1995 |
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Abstract: |
An overlapping generations model is used
to examine the dynamic implications of trade in financial services. The
model highlights the role of finance, through capital accumulation, in
the growth process. Emphasis is placed on the dynamic relationship
between financial intermediation and the evolution of the capital stock.
This relationship has positive implications for the paths of income and
consumption and for the intergenerational distribution of income. The
results provide formal support for the argument that liberalizing trade
in financial services implies dynamic effects grounded in the basic
sources of comparative advantage. |
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