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INTERNATIONAL TRADE OF SERVICES AND FLOW OF NATURAL PERSONS

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Kruszka M.

Myśl Ekonomiczna i Prawna

2006

issue 1(12)

39-66

The aim of the paper is to indicate the basic principles concerning temporary movement of labour force engaged in international flow of services which were included in legal regulations of WTO. The author selects the European countries of transformation period as the objects of the analysis. To achieve the aim, the author uses statistical data showing the particular ways of provision of services and considers only the information included in balances of payment. He also uses the lists of liberalization commitments which all countries have to submit when entering General Agreement on Trade of Services. The results of the analysis indicate that provision of services in international trade through temporary transfer of natural persons is least susceptible to the principles of free trade which results from the smallest number of liberalization commitments taken during the Uruguay Round and during further negotiations. It is equally true about developed and developing countries, as well as those undergoing economic transformation. It can be concluded that it is economically beneficial for the transformation period countries to allow a wider international flow of persons providing services which mostly concerns people with lower qualifications or sole traders. It would enable them to make use of the comparative advantage which mobile and relatively cheap labour force constitutes.

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1 Myśl Ekonomiczna i Prawna

1 2006

1 Kruszka M.

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INTERNATIONAL TRADE OF SERVICES AND FLOW OF NATURAL PERSONS