WTO accession and financial liberalization in developing countries: assessing the evidence

Published in Research news

Abstract

The World Trade Organization (WTO) since its establishment in 1995 accepted new members under conditions of extensive liberalization of their trade in goods and services. A key area for liberalization in services trade has been financial services. The new members had to commit themselves for opening up their financial sector for international competition. We analyze the impact of WTO accession on financial sector of newly acceded countries to the WTO between years 1995-2016. We show that the commitments for financial liberalization under the WTO accession have grown progressively over the last decade, putting harder pressure on late-comers.