One of the achievements of the of the European Union (EU) is the free movement of goods, services, capital and labour between the member states. The internal market for goods seems to function well, after the implementation of the Single Market programme in 1988. That is however not the case for...

In services, the activities of foreign affiliates often exceed the value of cross-border trade. A complete analysis of services liberalisation therefore requires the modelling of FDI. This paper presents the treatment of FDI in our CGE model WorldScan based on the ideas of Petri (1997) and...

CPB's contribution to the EU's 2005 Competitiveness Report includes Worldscan simulations for several aspects of the EU's Lisbon Agenda. One of the simulations concerns the macroeconomic consequences of lowering the administrative burdens for companies throughout the EU. This paper provides...

The European Commission's 2004 proposals for a Services Directive consists of measures to reduce or eliminate the obstacles of cross-border trade of services by introducing the 'country of origin' principle. It implies that regulation of the country of origin is relevant, and that the country of...

Intra-European trade in services is hampered by national regulatory differences for service markets. The European Commission has proposed a new directive to overcome these regulatory barriers. This document assesses the effects of this new directive on trade and investment in services. Read...

This study presents recently available data on the microstructure of Dutch exports and the relation between export participation and productivity at the firrm and establishment-level. We test whether recent theories of international trade with heterogeneous firms can explain the patterns in the...

Foreign Direct Investment (FDI) flows have increased substantially in the past two decades. These developments have motivated the appearance of a large number of empirical papers that test the expected benefits that FDI inflows are assumed to bring to the host countries. We survey the recent...

This paper assesses the consequences of the rapid Chinese economic development for Japan and the Netherlands. China has become the most important supplier of import goods for Japan and the fourth most important one for the Netherlands. With two-thirds of Dutch imports from China being...

Global applied general equilibrium (AGE) models focus on the interactions between regional product markets. Many of these models are developed to represent trade flows and evaluate trade policies. Foreign direct investment (FDI) and foreign commercial presence are ignored in most of them,...

India's impressive economic performance over the past few decades has had a positive net impact on the Dutch economy. Peculiar for India is its relatively strong position on the global markets for services. Imports of cheap Indian products have slightly improved Dutch households' purchasing...