International Trade in Services.pdf - DSpace at Khazar University

Building Empires Overseas 213
2. What are the rules with regard to the ownership of land and real estate by foreign
contractors Are they different from the rules covering local investors What effect do
potential differences have on building activity
3. Can foreign contractors bring in construction equipment for projects without the
imposition of major taxes and waiting time at customs
4. What types of margin preferences are provided to local contractors How do these
rules apply to exporters from developing countries
Integrating local product standards and building codes with international
good practice
1. Who establishes and monitors product standards and building codes in the industry
2. What laws and regulations discipline construction companies How are these enforced
3. Are foreign contractors subject to different licensing conditions relative to domestic
suppliers
4. How effective are the practices of the local authorities who inspect the work of
contractors Is it a frequent or random process
5. Do inspections tend to involve rent-seeking activity Are foreign contractors particularly
targeted
6. Would it make economic sense and does the government have the necessary capacity
to adopt any regional or international product standards or building codes that would
facilitate the integration of the local market with international markets (in addition to
maintaining or improving quality, health, safety, and other standards)
Source: Authors’ compilation.
Conclusion
Few sectors of an economy are as prominent as the construction service sector in
terms of value added and employment. This sector absorbs large numbers of lowskilled
and medium-skilled workers and supports strong backward links to other
parts of the economy, including suppliers of construction equipment and input
materials, as well as architectural and engineering services. Construction services
make up, on average, 6 percent of the GDP of countries, and the share increases
to nearly 10 percent for the construction sector generally. The sector is also particularly
pertinent in the daily lives of people as a provider of thephysical infrastructure
for personal shelter, sanitation, water, energy, schooling, health services,
transportation, and private sector activities. The World Bank is a major financier
of construction projects in the developing world, and the sector is one of the keys
in helping achieve the World Bank’s mission of eradicating poverty.
There are gains from the trade in construction service imports and exports, and
open markets for construction services are therefore in the national interest of
developed and developing countries alike. Open markets allow countries to specialize
in what they do best, which expands the quality and quantity of goods and services
that can be produced and consumed, thereby leading to the more efficient allocation
of resources. The resulting gain in economic welfare helps raise overall living