Foreign Professionals and Domestic Regulation
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...
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| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2008/11/10033207/foreign-professionals-domestic-regulation http://hdl.handle.net/10986/6352 |
| Summary: | 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. |
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