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This volume presents selected applications of the new methodologies developed by the World Bank's Trade and Regional Integration Unit to assess the competitiveness of countries services sector, discern the types of barriers to services that exist in the regulatory environment, and identify the resulting policy implications.

The analysis in this report confirms the findings of previous studies that trade liberalization improves aggregate welfare and is in the long run associated with higher employment and wages. The analysis addresses a major gap in the literature, which has heretofore provided limited evidence about the trade-related adjustment costs faced by workers in developing countries and how they are affected by mobility costs. Labor market frictions reduce the potential gains from trade reform. For a tariff reduction in a given sector, the resulting change in relative prices raises real wages in some...

How easily workers can move to take advantage of new opportunities is important in determining how they fare under the increased economic integration planned for ASEAN. To study this question, this report simulates how worker welfare is affected by enhanced trade integration under different scenarios of labour mobility costs.