FOREIGN PROFESSIONALS AND DOMESTIC REGULATION

Aaditya Mattoo and Deepak Mishra ()
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Deepak Mishra: The World Bank, Postal: 1818 H Street, N.W., Washington, DC 20433

No 4782, Policy Research Working Paper Series from The World Bank

Abstract: Changes in demographics and patterns of investment in human capital are creating increased scope for international trade in professional services. The scope for mutually beneficial trade is, however, inhibited not only by quotas and discriminatory taxation, but also by domestic regulation -- including a range of qualification and licensing requirements and procedures. To illustrate the nature and implications of these regulatory impediments, this paper presents a detailed description of the regulatory requirements faced in the United States market by four types of Indian professionals: doctors, engineers, architects, and accountants. India is one of the largest exporters of skilled services, and the United States is one of the largest importers of skilled services, so these two countries reflect broader global trends. The paper argues that regulatory discrimination, for example through preferential recognition agreements, has implications both for the pattern of trade and for welfare. It presents some illustrative estimates that suggest the economic cost of regulations may be substantial. The paper concludes by examining how the trade-inhibiting impact of regulatory requirements could be addressed through bilateral and multilateral negotiations.

Keywords: Accreditation; architect; architects; Architecture; barriers to entry; board meeting; candidate; candidates; career; career advancement; Certificate (search for similar items in EconPapers)
Pages: 34 pages
Date: 2008-11-01
New Economics Papers: this item is included in nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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