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Article

French

ID: <

10670/1.wyy8ej

>

Where these data come from
The influence of policies on trade and foreign direct investment

Abstract

‘titrebSummary’/titrebThis document assesses the importance of border and non-border policies for global economic integration. The study focuses on four broad lines of guidance: remove explicit restrictions on trade and FDI; promoting internal competition; improve the responsiveness of the labour market; put in place infrastructure equipment of an appropriate level. The analysis, covering FDI and trade in goods and services, seeks to capture the main mechanisms of globalisation and address most modes of cross-border service provision. Despite widespread liberalisation over the last two decades, it appears possible to further reduce economic policy barriers to the integration of OECD markets. Remaining barriers have a significant impact on bilateral trade and FDI flows, and estimates suggest that anti-competitive domestic regulations and restrictive labour market provisions hamper integration as well as explicit restrictions on trade and FDI. In the light of scenarios for removing these barriers, further liberalisation of trade, FDI and domestic product and labour markets could have considerable quantitative effects on international integration.

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